Economic Overview

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

Thanks to its market size, the extent of its natural resources (coffee, emeralds, oil and coal, among others) and a historical reputation as an exemplary debtor, Colombia has experienced a stable and solid growth for most of the past two decades. Although the country was affected by the fall in oil prices due to the pandemic, Colombia was able to recover and, in 2022, the country recorded a GDP growth of an estimated 7.6%, mainly due to increased household consumption - which should continue to drive the economy in the coming years, supported by the ongoing recovery on the job market and the continuous implementation of fiscal support programs targeting low-income households. According to the IMF, the country's economy is expected to grow at a slower pace in 2023 and 2024, with GDP reaching an estimated 2.2% and 2.8%, respectively.

Colombia's account deficit decreased to 5.1% of GDP in 2022, mainly due to the country's trade deficit and high dollar outflows driven by dividend remittances and repatriated income from foreign investors. However, a decrease in the trade deficit due to a slowdown in import demand is expected in 2023, which should lead to an account deficit of 4.4%. In 2022, government balance increased -7.7% of GDP, and while the deficit should continue in the coming years, that rate is expected to decrease to -4.1% in 2023 and -3.2% in 2024. Inflation increased to 9.7% in 2022, but it is expected to decrease to 7.1% in 2023 and 4.3% in 2024. Colombia’s public deficit remains a source of concern for the government and for investors. In 2022, gross debt decreased to 61.1% of GDP and, looking ahead, that rate is expected to slightly decrease to 60% in 2023 and 59.2% in 2024. Although the pandemic has significantly impacted the Colombian economy, the country has been recovering, following the implementation of the government measures to counteract the resulting economic crisis. Overall, Colombia's fiscal measures to mitigate the pandemic have been effective in boosting economic activity, which has been gradually improving.

One third of the Colombian population lives below the poverty line. Development policies for rural areas are a priority for the Colombian government. Unemployment rates, which increased during the pandemic, declined to 11.3% in 2022, and should continue decreasing in the coming years - reaching 11.1% in 2023 and 10.5% in 2024. However, unemployment rates are not expected to go back to pre-pandemic levels in the short term. It should be noted, though, that more than half of the Colombian population continues to work in the informal sector. Overall, inequalities are strong throughout the country: Colombia has a Gini coefficient of 50.4, one of the highest in Latin America. Corruption and security remain as major concerns for individuals and businesses.

Foreign Trade

Colombia's foreign trade represented 40.9% of the country’s GDP in 2021, according to the World Bank. Colombia mainly exports petroleum oils (32.3%), coal (10.6%), coffee (7.7%), gold (7.6%), and cut flowers (4.2%). The country's main imports include petroleum oils (5.8%), telephone sets (4.5%), motor vehicles (3.8%), medicaments (3%), and human and animal blood prepared for therapeutic uses (3%).

Colombia's main trade partners are the United States, China, Brazil, Mexico, Panama, India, and Germany. Colombia has signed trade agreements with the ANC countries (Andean Community of Nations), the MERCOSUR countries, the Central American and Caribbean countries and the European Union. Along with Mexico, Chile and Peru, Colombia founded the Pacific Alliance in 2012, designed to boost trade relations with Asian emerging markets. The country is also part of numerous free trade agreements with Chile, Guatemala, Honduras, El Salvador, Canada, Mexico, Switzerland, Norway, Iceland, Liechtenstein and the United States. The free-trade agreement with the United States, which came into force in May 2012, has had a particularly large impact in the Colombian economy, given that the United States is the country's biggest trade partner.

In 2021, Colombian exports bounced back to pre-pandemic levels, as global demand increased. As such, the country’s exports increased from USD 31.4 billion in 2020 to USD 40.2 billion in 2021. Over the same period, imports of goods increased from USD 43.4 billion to USD 61.1 billion. As a result, Colombia's trade deficit reached USD 13.9 billion in 2021. According to WTO, imports of services in 2021 amounted to USD 13.1 billion, far greater than exports of services, which totalled USD 6.7 billion in 2021. Thus, the overall trade deficit in 2021 reached USD 20 billion.

COVID-19 Country Response

Travel restrictions

Regularly updated travel information for all countries with regards to Covid-19 related entry regulations, flight bans, test and vaccines requirements is available on TravelDoc Infopage.
To find information about the current travel regulations, including health requirements, it is also advised to consult Travel Regulations Map provided and updated on a daily basis by IATA.

Import & export restrictions

A general overview of trade restrictions which were adopted by different countries during the COVID-19 pandemic is available on the International Trade Centre's COVID-19 Temporary Trade Measures webpage.

Economic recovery plan

For the general overview of the key economic policy responses to the COVID-19 pandemic (fiscal, monetary and macroeconomic) undertaken by the government of Colombia, please consult the country's dedicated section in the IMF’s Policy Tracker platform.

Support plan for businesses

For an evaluation of impact of the Covid pandemic on SMEs and an inventory of country responses to foster SME resilience, refer to the OECD's SME Covid-19 Policy Responses document.
You can also consult the World Bank's Map of SME-Support Measures in Response to COVID-19.