Alarms Continue to Sound

TL;DR

Colombia's public foreign debt increased to $152.747 billion in 2025, up 15.3% from 2024.
This debt now represents 33.3% of GDP, an increase from 31.6% in 2024.
The government made the largest-ever issuance of dollar bonds in January 2026, totaling $4.950 billion.
The primary deficit widened to -3.5% of GDP in 2025, the largest in three decades outside of macroeconomic crises.
Fiscal credibility has eroded due to overestimated revenues and underestimated expenses, and the government has not clearly explained how it will cut $25 trillion in primary spending and $18 trillion in interest.
Colombia's country risk premium (EMBI) has reached its highest level since August 2025, indicating increased borrowing costs.
The situation is described as a serious warning, with each month of inaction increasing the cost of correction and reducing economic maneuverability.

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