Colombian Economy Likely Grew 2.4% in Q1 2026: Sector Performance Revealed
The performance of the Colombian economy in the first quarter of 2026 would have presented a scenario of deceleration, with projected growth between 2.4% and 2.5%, below the 2.7% of the same period in 2025.
TL;DR
- Projected Q1 2026 economic growth for Colombia is between 2.4% and 2.5%, lower than 2.7% in Q1 2025.
- The services sector and entertainment are leading economic activity, with projected growth of 8.5% in entertainment.
- Industry, construction, and mining are experiencing significant slowdowns, with construction seeing a 7.5% drop last year and a poor start to 2026.
- Interest rates increased from 9.25% to 11.25% in the first quarter, influenced by a substantial minimum wage hike.
- Fiscal deterioration, with a projected deficit of 7.0% of GDP, and rising inflation (5.29% in February) are major risks.
- Foreign direct investment (FDI) decreased by 21% in January-February 2026 compared to the same period in 2025.
- Household consumption remains the main driver of the economy, supported by sectors like commerce, restaurants, and tourism.
- Manufacturing showed mixed results in January 2026, with a slight decrease in production and sales but a marginal increase in employment.
- The labor market shows mixed signals, with historically low unemployment rates in January and February, but a potential slight deterioration annually due to high labor costs.