Colombia Is Near the End of a Consumption-Driven Growth Model: Here's Why
Economic growth in Colombia is projected at 2.8% for the first quarter of 2026. Photo: iStock
TL;DR
- Colombia's economic recovery is losing its momentum, with a slowing growth rate observed in late 2025.
- The recent expansion was largely fueled by private consumption and public spending, with limited contributions from investment and exports.
- Investment has fallen to 16% of GDP, its lowest point in sixty years, impacting the country's productive capacity and future growth potential.
- Key support factors for consumption, such as remittances, are projected to decline, and coffee revenues face downward pressure.
- Economic growth projections for 2026 have been revised downward from 2.8% to 2.3%.
- The country faces a transition towards an economic phase where growth requires renewed investment and strengthened productive sectors.
- Increased consumption led to a historic trade deficit in 2025 due to higher imports outpacing local production capacity.