Construction in Colombia falls 7.5% in 2025, marking its worst record since 2020: what is this decline due to?
New housing in Bogota Photo: Valentina Delgadillo - Portafolio
TL;DR
- Construction in Colombia fell by 7.5% in 2025, the lowest rate since 2020.
- The sector has been in negative territory for two and a half years, after previously driving economic recovery.
- Official figures from Dane show a marked shift from double-digit growth to consecutive contractions.
- The construction sector's performance was among the worst in 2025, alongside mining and quarrying.
- While the overall Colombian economy grew 2.6% in 2025, this growth was fueled by consumption and public spending, not investment.
- Gross capital formation, a key indicator of investment, grew only 1.3% in 2025.
- The weakness in construction is identified as the main driver of low investment growth, rather than machinery and equipment.
- The construction sector is vital, linking 34 subsectors of the economy.
- Future projections suggest a gradual recovery for investment between 2026 and 2027, with potential contributions from infrastructure projects and housing.
- Macroeconomic factors such as inflation above the target and a high fiscal deficit are noted, influencing monetary policy and the need for private investment reactivation.