Colombia in top 5 of standout economies according to The Economist

The Economist magazine ranked Colombia fourth among 36 OECD economies with the best performance in 2025, tying with Spain. This recognition highlights the country's strong economic growth and thriving stock market. President Gustavo Petro celebrated the achievement, crediting it with attracting global investors.

Colombia's economy has earned international praise by closing the year with a strong showing in The Economist's annual report on the most notable economies of 2025 in the OECD. The country holds fourth place, tied with Spain, outperforming G7 nations like Canada, France, and Japan, amid a global backdrop of persistent inflation and worldwide growth of around 3%.

The ranking relies on five key macroeconomic indicators: inflation, inflation breadth, gross domestic product (GDP), employment, and stock market performance. Colombia excelled especially in GDP growth, reaching 3.4% year-over-year, and in narrowing inflation breadth by 6.7 points, signaling reduced price pressures across the household basket.

These figures align with recent local data from the National Government and Dane, indicating annual inflation at 5.30% in November and an unemployment rate of 8.2% in October, marking the most robust recovery since the pandemic. While the Central Bank of Colombia forecasts a more conservative 2.6% growth for 2025, The Economist's analysis emphasizes the nation's resilience to external shocks and tight monetary policies.

President Gustavo Petro responded on his X account: "The Economist recognizes us as the fourth best economy in the OECD. That's why true entrepreneurs from across the country and the world seek us out for dialogue." This ranking affirms Colombia's economic vitality in a challenging year.

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Vibrant Bogota street market with shoppers, rising GDP graph on billboard, representing Colombia's 3.6% economic growth in Q3 2025.
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Colombia's GDP grows 3.6% in third quarter of 2025

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Colombia's gross domestic product grew 3.6% in the third quarter of 2025, exceeding market expectations and marking the strongest expansion since 2022. The result was mainly driven by public spending and sectors such as commerce and public administration. However, activities like mining and construction showed contractions.

The National Administrative Department of Statistics (Dane) revealed that the Economic Tracking Indicator (ISE) grew 3.1% in November 2025 compared to the same month in 2024, marking 18 consecutive months of positive growth. However, the manufacturing sector showed limited progress with 0.7% production growth, while sales fell 0.4%, and retail commerce rose 7.5%. Overall industrial production varied by 1.7%, driven by electricity supply.

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Building on its strong 2025 performance as the fourth strongest emerging currency, the Colombian peso has appreciated 3.8% in the first 14 days of January 2026, leading the pack. It outperforms the Chilean peso (2.8%) and Argentine peso (1%), driven by government external debt issuance and favorable US inflation data.

Dane reported that Colombia's unemployment rate in October 2025 was 8.2%, the lowest for an October since 2017, with 2.1 million people unemployed. This marks a drop of 0.9 percentage points from October 2024. However, Andi warned about the rise in labor informality amid job creation.

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JP Morgan released its first report of the year on global markets strategies, highlighting a potential rebound in Venezuelan oil supply to 1.2 million barrels per day in coming months. For Colombia, it forecasts 2.8% GDP growth this year and 6.1% inflation by year-end. The report also covers geopolitical tensions and the US labor market.

Continuing its strong revaluation trend earlier in January—where it led emerging currencies with gains over 4% through January 22—the Colombian peso depreciated 1.36% on January 28, 2026, diverging from appreciating regional peers like the Brazilian real and Mexican peso. Despite the daily drop, it holds a 3.5% monthly gain amid global volatility and commodity rebounds.

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In December 2025, Colombia created 603,000 new jobs, lowering the unemployment rate to 8.0%, a drop of 1.1 percentage points from 2024. Yet, 55.5% of workers, or about 13.45 million people, remain in informal employment. Experts note progress but warn of ongoing structural challenges in the labor market.

 

 

 

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