Most recent posts from Colombia

The Colombian labor market closed a solid first half of 2026. In June, the unemployment rate stood at 8.0%, the lowest for this month since 2001. However, sectoral drivers shifted, with public administration playing a less prominent role compared to other sectors.

The Central Bank of Colombia kept the policy rate at 12% in a split decision. Additionally, a reserve accumulation program was announced.

Inflation in June continued its upward trend, reaching 6.14% year-on-year, in line with BBVA Research expectations, representing an increase of 30 bps compared to May and 104 bps relative to the end of last year.

The national unemployment rate declined to 8.0%, reaching historic lows, while employment growth accelerated to 4.0% year-on-year, driven primarily by the public administration, education and health sector.

The conflict in the Middle East has caused a global economic shock in 2026 that is impacting Latin America. Rising commodity prices and logistics costs have triggered a spike in inflation and a slowdown in economic growth.

Colombia's economy will grow 2.6% in 2026 and 2.1% in 2027 driven by private consumption, amid global geopolitical tensions and cautious monetary policy. Activity faces challenges from weak investment, persistent inflation, and fiscal sustainability pressures.

Inflation in May came in line with BBVA Research expectations and continued its upward trend, reaching 5.84% year-on-year, representing an increase of 16 basis points (bps) compared to April and 74 bps relative to the end of last year.