IMF cuts Colombia's growth forecast to 2.3% in 2026 and sounds an economic alarm: why?
IMF - International Monetary Fund Photo: EFE- Jim Lo Scalzo
TL;DR
- The IMF has lowered Colombia's economic growth forecast for 2026 to 2.3%, a decrease of two tenths from its previous estimate.
- Inflation in Colombia is projected to rise to 5.9% in 2026, making it the fourth highest in South America.
- The Central Bank of the Republic raised its interest rate to 11.25% to combat inflation, a move criticized by the national government.
- Unemployment is expected to increase, reaching 9% in 2026 and 10% in 2027.
- External factors such as geopolitical tensions and restrictive financial conditions, along with internal policy disagreements, contribute to a less certain economic outlook.