In 2023, the economy grew by 0.7%, followed by a 1.7% increase in 2024, driven by private consumption and modest investment as inflation decreased and interest rates fell, according to the World Bank Group. Poverty dropped slightly to 31.3%, with regional disparities persisting. In addition, the gross domestic product (GDP) in current prices in Colombia is approximately 427.77 billion U.S. dollars in 2025. The country’s average inflation stands at approximately 4.7%, per Statista.

Colombia has kept macroeconomic stability through strong institutions, like inflation targeting, exchange rate flexibility and fiscal rules. While economic growth has been steady, it’s not enough. Productivity has stagnated for the last two decades, slowing progress toward closing the gap with high-income economies and reducing social and regional inequalities.

Columbia’s political instability remains a challenge as President Gustavo Petro grapples with public scandals and growing concerns over public safety. After Congress rejected the tax reform and 2025 budget proposal, Petro issued a budget by decree in December. He later secured a win with the approval of his pension reform, set to take effect in July, and a decentralization bill passed in December. Additional reforms are underway and will likely test his political strength again this year.

The International Monetary Fund (IMF) projects an uptick in Colombia’s GDP growth over the next few years, reaching 2.5% in 2025, with inflation at 4.5%. However, some observers predict that tensions over security and drug policy may strain the U.S. -Colombia relationship.

Uncertainty regarding fiscal consolidation, policy changes and external trade and financing shocks could also impact the country’s economic outlook, according to the World Bank Group. “Higher productivity growth requires investments in infrastructure, more efficient public services, a more equitable tax system to encourage private investment and a more open business environment to foster competition and innovation,” the report reads.

In the credit landscape, customers in Colombia have averaged 8 days beyond terms, with 56% saying payment delays have stayed the same, according to the FCIB Credit and Collections Survey. The most common causes for payment delays are government approval (67%) and central bank issues (50%). “Columbia is not required to share as much insights as other countries,” one respondent said.

The bottom line: Despite an optimistic economic outlook, Colombia still faces structural hurdles, including the need to boost domestic savings and investment.