Colombia’s economic growth slowed to 2.6% in 2025, according to recent reports, with a more pronounced deceleration in the fourth quarter. The figure, while representing an increase from the stagnation experienced in 2023, fell short of earlier expectations and signals emerging headwinds for the Andean nation. The slowdown at the end of the year was attributed to weaker domestic demand, according to Bloomberg.com. This deceleration occurred despite a moderate uptick in GDP that had initially cemented Colombia’s recovery from the economic standstill of the previous year, as reported by Colombia One. December’s economic activity specifically showed a cooling trend, TradingView noted. Adding to the economic challenges, Colombia’s justice system recently suspended a planned minimum wage hike. Details surrounding the suspension were not immediately available, but the move introduces further uncertainty into the economic outlook. The broader global economic climate likewise presents challenges. The U.S., a key trading partner, is facing potential headwinds from newly imposed tariffs and overall economic conditions, as highlighted by ICIS reporting on the American Fuel & Petrochemical Manufacturers (AFPM) annual meeting. While the direct impact on Colombia remains to be seen, the potential for reduced demand from the U.S. Market is a concern. Former U.S. President Donald Trump’s recent launch of a trade war with the U.S.’s top three trade partners, with a stated intention to extend these measures to Europe and key business sectors, introduces a significant layer of global economic instability. ICIS reported that this development could have far-reaching consequences for international trade and economic growth. The Latin American PVC market, as profiled by ICIS, also presents a complex landscape for Colombia’s petrochemical sector, though the specific impact of regional PVC dynamics on the broader Colombian economy remains unclear. ICIS continues to provide pricing services and analysis for global commodity markets, offering ongoing insights into these trends. As of February 17, 2026, the Colombian government has not issued a statement regarding the minimum wage suspension or the potential impact of global trade tensions on the national economy. No further steps have been publicly scheduled to address these issues.
Colombia Economy: GDP Growth Slows in 2025 Despite 2.6% Rise | Forecasts & Updates
