Most recent posts from Colombia

The government has taken significant steps in implementing its fiscal roadmap, including the enactment of the 2027 Budget and the freezing and reduction of budget allocations for 2026. Attention now turns to the submission of the Economic Rescue Bill. The strategy will require a coordinated effort.

Latin America faces external headwinds, including less favorable global financial conditions and volatility stemming from global geopolitical tensions, compounded by the El Niño phenomenon. Despite these challenges, the region is expected to maintain steady growth of around 2.1% in 2027.

El Niño generates heterogeneous impacts across South America, affecting Argentina, Colombia, and Peru. Climate change intensifies these extreme events. Given the uncertainty, it is vital to conduct granular analyses and strengthen the capacity to adapt to climate change.

El Niño 2026–27 could be exceptional, but its impact will not depend on intensity alone: local climate conditions, timing, and sectoral exposure will be key. Granular analysis can help anticipate risks, while adaptation can mitigate their effects

Colombia's labor participation dropped from 68% to 64% in the last decade, driven by youth. This stems from two factors: more time spent studying (higher tertiary enrollment) and a smaller population share due to demographic aging. Higher inactivity due to studies boosts future human capital.

By a majority, Colombia's central bank increased the interest rate by 25bp to 12.25%. The decision responds to the rebound in annual inflation to 6.2% in August and rising expectations, despite signs of a slowdown in economic activity and a weak labor market.

Annual inflation resumed its upward trend in August and stood at 6.24%, 21 bps above July and 114 bps above the level observed at the end of last year.