Colombia's National Association of Entrepreneurs (Andi) voiced concerns over uncertainty from the 2026 Budget discussion and pending tax reform. The labor reform's implementation has raised costs and hindered hiring, while informality remains a key challenge to competitiveness. A survey found 53% of entrepreneurs saying informality affects their operations.
Andi stated that the productive sector faces uncertainty from the 2026 Budget discussion, which needs a tax reform for full funding. The labor reform, per the guild, raises costs, complicates hiring, and limits job creation, worsened by 5% inflation that curbs purchasing power.
In its industrial opinion survey, the organization highlighted informality as "the elephant in the room," with deep implications for competitiveness and productivity. Bruce Mac Master, Andi's president, noted that six out of every 10 employees are informal. 53% of respondents reported this phenomenon affects their operations, while 31% cited insecurity impacts and 79% road blockages complicating goods transport.
Despite challenges, industrial production grew 2.1% from January to August 2025, total sales 2.2%, and national market sales 2.4%. In August, the economic indicator rose 2%, driven by tertiary activities at +3.3%, though primary and secondary ones declined.
62.7% of firms view their current situation as good, up from 60.7% in 2024, and 34.1% expect future improvements, above 33.9% last year. Key issues include lack of demand, dollar volatility, raw material and logistics costs, reform uncertainty, insecurity, smuggling, and unfair competition. Informality is fueled by rising labor costs, inflation, taxes, and cheap imports, leading to poor-quality products, VAT evasion, and absent labor guarantees.
Andi called for stronger informal market oversight, tax stability, and strict enforcement of labor laws. Profitability reducers include low demand, falling sales prices, cost pass-through difficulties, and rises in raw materials, logistics, manufacturing, and energy basket costs.