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) reported that Colombia's GDP grew 3.6% in the third quarter of 2025 compared to the same period in 2024, when it was 1.8%. This advance exceeded Bloomberg analysts' median projection of 3.2% and marks the highest growth since the third quarter of 2022, at 7.2%.
The sectors that most drove the economy were public administration and defense, with an 8% increase and a contribution of 1.3 percentage points, followed by commerce, repair, transport, accommodation, and food services, at 5.6% and 1.2 points. Manufacturing industries grew 4.1%. Dane director Piedad Urdinola attributed the dynamism in public administration to increases in military personnel, military premiums, and investments by the National Registry in the electoral process. In commerce, the biggest boost came from wholesale and retail trade (+8.6%), with sales of electronic devices, food services, and imports of hybrid and electric vehicles.
From internal demand, which grew 5%, government consumption rose 14.2%, while household consumption increased 4.2%. Gross fixed capital formation, a measure of investment, grew 4.8%, with advances in machinery and equipment (+13.9%) and other buildings (+3.9%), though housing fell 8.6%.
In contrast, mining and quarrying contracted 5.7%, with declines in metallic minerals (-18.2%), crude oil and natural gas (-3.7%), and coal (-5.6%). Construction dropped 1.5%. Bruce Mac Master, president of Andi, expressed concern over these negative trends, which he attributed to fiscal uncertainty, deteriorating international relations, the pre-electoral year, and the labor reform in effect since June 2025. "It is concerning that the main impetus comes from public spending at a time when public finances are extremely complex," said Mac Master, warning that this model is not sustainable in the long term and does not improve competitiveness in infrastructure, housing, education, or health.
GDP in current values reached $475.7 trillion in the quarter and $1.358 trillion from January to September, approaching the 2024 total ($1.706 trillion). This growth could influence a rate hike by the Central Bank, amid inflationary pressures and a fiscal deficit near 7.1% of GDP.
