economy
May 6, 2026
Alert on Finances: Colombia Registers the Worst Fiscal Deterioration in Latin America, According to ECLAC
Economic alarms in the country were raised this week following the publication of the report 'Fiscal Panorama of Latin America and the Caribbean 2026'...
TL;DR
- Colombia's primary fiscal balance has worsened more than any other Latin American country in the past year, according to ECLAC.
- The country's primary balance is projected to move from -2.4% to -3.6% of GDP from 2024 to 2025.
- Colombia faces the highest interest rates on its debt in Latin America, worsening since 2024.
- After Brazil, Colombia has the largest fiscal deficit in the region.
- The structure of Colombia's debt is shifting towards TES (Treasury Direct Treasury Bonds), representing 61.5% of the total, with domestic debt exceeding 70%.
- Interest rates on TES are historically high, above 13%, making borrowing more expensive.
- An inverted yield curve for TES indicates a higher perceived risk in the short term.
- The increased cost of government financing impacts citizens through higher general interest rates and reduced public spending capacity.