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Remittances to Colombia grew 14.1% year-on-year by July 2025, reaching USD 7.566 billion. In 2024, they totaled USD 11.848 billion (2.3% of GDP), an amount equivalent to 79% of oil exports and three times coffee exports, supporting households and financing the external deficit.

The Lima Consumer Price Index (CPI) contracted 0.29% in August 2025, surprising the consensus of analysts. Year-on-year inflation fell to 1.1%, close to the lower limit of the Central Bank's target range. Inflation excluding food and energy rose slightly to 1.8%.

Private consumption has become Colombia’s key growth engine. Driven by employment, income, credit, and remittances, it is shifting toward services and entertainment, while demographic changes reshape household spending patterns for the years ahead.

The economy grew 2.8% year-on-year in 2Q, driven by the expansion of domestic demand (+6%). On the fiscal front, the deficit narrowed to 2.6% of GDP due to higher revenues, while public debt stood at 31.8% of GDP. Externally, the current account posted a surplus of 1.9% of GDP.

GDP grew 4.5% year-on-year in June, below the market consensus (4.8%) but higher than in the previous two months. The primary component rebounded, and the non-primary component grew by over 3.0%.

GDP rose 2.1% y/y in Q2 2025, fueled by consumption, especially durable goods. Investment focused on machinery and civil works, but buildings weighed down growth. The 2025 forecast remains at 2.3%, with room for upside if positive trends strengthen.

Public spending in Colombia has grown faster than revenues, pushing the deficit and debt up to 61% of GDP. Fiscal sustainability requires aligning spending with actual revenues, defining the optimal size of the State, and prioritizing efficient investments that boost well-being and growth.

Monthly inflation in July stood at 0.28%, exceeding analysts’ expectations. As a result, the annual inflation rate rose to 4.9%, marking an 8 basis point increase compared to June’s figure. This outcome was mainly driven by an acceleration in the inflation of perishable food items.