Petro Government Acknowledges Inflation Will Remain Higher Than Expected and Far From the 3% Target This Year
The cost of living in February was lower than expected. Photo: Image generated with artificial intelligence.
TL;DR
- Colombia's updated Financial Plan reveals a revised macroeconomic outlook with a slower convergence of inflation towards the central bank's target.
- Inflation is projected to close 2025 at 5.1% and 2026 at 5.8%, remaining above the target range.
- Economic growth for 2025 is confirmed at 2.6%, with a similar projection of 2.6% for 2026, indicating a period of moderate expansion.
- The average dollar exchange rate is now expected to be around $4,053 pesos in 2025 and $3,801 in 2026, a weakening compared to previous forecasts.
- Oil price projections have been adjusted downwards, with an average of US$68.2 per barrel for 2025 and US$59.2 for 2026.
- The current account deficit is projected to increase to 2.4% of GDP in 2025 and 2.9% in 2026.
- Import growth is expected to be more contained, with projections of 10.1% for 2025 and 6.5% for 2026.