Avila: Colombia 2026 current account gap seen at 2.2% of GDP

Colombia’s current account deficit is projected to narrow to 2.2% of GDP in 2026, according to recent assessments, reflecting a slight improvement from the 2.4% deficit recorded in 2025. This adjustment aligns with broader economic trends, including a moderation in household consumption and a gradual tightening of monetary policy. The Central Bank of Colombia has maintained a cautious stance, with the monetary policy rate expected to remain elevated at 12.25% through the year to curb inflation, which forecast to reach 6.5%.

Despite these measures, the current account deficit is still expected to widen slightly to 2.8% of GDP in 2026 under some projections, driven by a combination of high public debt, weak fixed investment growth, and external pressures from global energy prices. Analysts highlight that the country’s economic recovery remains contingent on the promotion of private investment, which is seen as critical to addressing macroeconomic imbalances and sustaining long-term growth. With global uncertainties persisting, particularly from geopolitical tensions, Colombia’s economic outlook remains cautiously optimistic but dependent on both domestic and international conditions.