Colombia gdp growth driven by public spending in first quarter

Colombia's economy grew 2.2% year on year in the first quarter of 2026, according to Dane data. The main driver was state spending on consumption and public administration.

Government final consumption rose 7.8% annually and the activity of public administration, defense, education and health expanded 5.7%. The latter item alone contributed 0.9 percentage points to total GDP growth.

The national budget for 2025 reached 498.5 trillion pesos, of which 316 trillion went to operating expenses and only 69.8 trillion to investment. Gross capital formation fell 3% annually.

Sectors such as construction contracted 5.4%, residential buildings 8.6% and coffee production 30.5%. Natural gas extraction decreased 17%. Exports grew just 3.5% and fell 1.7% in seasonally adjusted quarterly terms.

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Realistic illustration of Colombia's economic growth with marketplace consumption, public spending, and signs of declining sectors for a news article.
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Colombian economy grows 2.2% in first quarter of 2026

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The Dane reported that Colombia's GDP rose 2.2% in the first quarter of 2026, below the 2.5% recorded a year earlier. Growth was driven mainly by public spending and household consumption, while sectors such as construction and agriculture posted declines.

Dane reported Bogotá's GDP grew 4.6% in Q3 2025 year-on-year, surpassing Colombia's national figure of 3.6% from the same period in 2024. Growth was fueled by commerce, transport, and services sectors. Year-to-date through Q3, the capital's GDP expanded 3.9%.

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Foreign direct investment reached US$3.794 million between January and March 2026, up 63.4% from the previous quarter.

South Korea's real GDP jumped 1.7 percent in Q1 2026 from the prior quarter—the strongest growth in 5½ years—despite Middle East tensions, easily topping the Bank of Korea's 0.9 percent forecast on robust exports and steady domestic demand. Part of the rebound following 2025's modest 1% annual expansion (see prior article in series).

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Indonesia's economy grew 5.61 percent in Q1 2026, the highest in five years and among G20 nations releasing data, according to BPS. Kadin, officials, and the Finance Minister praised the achievement amid global challenges. Growth was driven by household consumption, government spending, and investment.

DANE published the 2025 Tourism Satellite Account data showing US$13.498 million in international tourism revenue and 995,709 jobs in the sector.

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Provisional GDP estimates released on Friday show 7.7 per cent growth for 2025-26. The figure exceeds the government's February prediction by 0.1 percentage points. Outlook for 2026-27 points to a slowdown.

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Energy, education and health lead budget execution through March

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Colombia's March inflation closes at 5.56% per Dane

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