The Colombia economy 2026 is at a pivotal moment, with persistent inflation, a widening fiscal deficit, a record minimum wage increase, and an energy transition debate. The country's GDP expanded only 0.8 percent in 2023, but has since rebounded with a more encouraging 2.6 percent in 2025. However, Fedesarrollo, Colombia's most influential independent economic think tank, has cut its 2026 GDP growth forecast from 2.9 percent to 2.06 percent due to agricultural climate shocks, the impact of a 23.7 percent minimum wage rise, tighter monetary policy, and heightened uncertainty ahead of the presidential election. The IMF places 2025 growth at 2.5 percent and projects a modest above-2-percent trajectory for 2026. Private consumption is the primary engine, supported by remittances that grew 8.1 percent to USD 8.7 billion in 2025, but investment is a structural concern. The government faces uncertain congressional prospects and a proposed tax reform targeting 26 trillion dollars. Colombia is running a fiscal deficit of nearly 57 to 61 percent of GDP, triggering successive revenue shortfalls from Moody's and S&P.