The National Administrative Department of Statistics (Dane) reported that Colombia's economy grew 2.6% in 2025, below expectations of 2.8%. In the fourth quarter, GDP expanded 2.3%, driven by household consumption, the public sector, and cultural activities like concerts. Investment fell 2.9%, the lowest level in two decades.
The Dane released GDP data for 2025 on February 16, 2026, showing annual growth of 2.6%, below analysts' and guilds' projections of at least 2.8%. In the fourth quarter, expansion was 2.3%, ranking Colombia fifth among OECD economies for that period, ahead of Mexico (1.6%), Sweden (1.7%), and the European Union (1.5%), but behind Poland (3.6%), Spain (2.6%), Lithuania (2.5%), and Czech Republic (2.4%).
Growth was driven by internal demand, with increases in household spending and sectors like public administration, defense, education, and health (4.8% variation, contributing 0.9 percentage points). Commerce, transport, and food services grew 3.4% (0.7 pp), while artistic activities, entertainment, and recreation recorded 11.5% (0.5 pp) in the quarter, highlighting massive concerts in Bogotá, Medellín, and other cities. Dane director Piedad Urdinola stated: "For the first time, it is not games of chance and gambling driving growth in this sector, but concerts and events".
However, gross fixed capital formation fell 2.9% after six positive quarters, attributed to reduced housing registrations. This left investment at 16% of GDP, its lowest in 20 years. Luis Fernando Mejía, CEO of Lumen Economic Intelligence, warned: "If the country does not raise its investment rate above 20% of GDP, it will remain trapped in a growth path below 3% annually".
President Gustavo Petro blamed the investment drop on the Banco de la República's rate hike to 10.25%, stating growth stems from household and state consumption, boosted by real income gains in health, child care, and public education. Critics like former Finance Minister José Manuel Restrepo called the pace "poor growth and unsustainable", citing fiscal deficit, over-indebtedness, and hostility toward the private sector. A Banco de Bogotá study showed the private sector grew 1.8%, while public spending jumped from 0.6% to 7.1%, causing 'crowding out'.
Regionally, Colombia's 2.6% exceeds the Latin American average estimated by Cepal at 2.4%, though it confirms slowdown, with Mexico at 0.5% annual and Guyana leading with double digits from oil. The Economic Tracking Indicator (ISE) grew 2.66% in 2025, marking 19 positive months, led by the tertiary sector (2.82%).
