Colombia to Grow 2.3% in 2026, Ninth in the Region, Group Says

COLOMBIA · ECONOMY

A global banking group projects that Colombia’s economy will grow 2.3% in 2026, placing it ninth in its ranking of Latin American economies, in a region expected to expand slowly this year.

What the forecast says about Colombia

The Institute of International Finance, an association of global financial firms, projects Colombia’s economy will grow 2.3% in 2026, ninth in its regional ranking. For 2027 it expects a slightly slower 2.1%.

The group attributes the modest outlook to uncertainty around the change of government due later this year, along with other economic factors. The presidential transition is part of Colombia’s regular electoral calendar.

The 2.3% figure sits in the middle of other forecasters’ estimates, which range from about 2.2% to 3.0%. Most flag a high fiscal deficit as a key risk to the outlook.

A slow year for the region

In the group’s ranking, Central America leads, with Panama and the Dominican Republic projected to grow above 4%. Several other Central American economies also rank ahead of the larger South American ones.

The group also trimmed its view of global growth for 2026, to about 2.8%, citing risks including conflict in the Middle East. That weaker backdrop weighs on demand for the region’s exports.

Forecasts are estimates and can change as new data arrives. The figures offer a snapshot of how analysts see the region heading through 2026, rather than a settled outcome.

Frequently Asked Questions

How fast is Colombia expected to grow?

The Institute of International Finance projects 2.3% growth in 2026, ninth in its Latin American ranking, and 2.1% in 2027. Other forecasters range from about 2.2% to 3.0%.

Why the cautious outlook?

The group cites uncertainty around the change of government due later this year and other economic factors. Many analysts also point to a high fiscal deficit as a key risk.

Which economies lead the region?

Central America tops the ranking, with Panama and the Dominican Republic projected above 4%. The group also lowered its global growth view for 2026 to about 2.8%.

Connected Coverage

For a regional comparison, see our coverage of Chile’s lowered 2026 growth outlook. For more on Colombian business, see our report on Ecopetrol’s move into Brazil.