Colombia's economy accelerated in 2025, led by domestic demand and public spending that helped offset a deepening contraction in the oil and mining industries.
The Colombian economy grew by 2.6pc in 2025, up from 2.3pc in 2024. Still, growth fell short of the 2.8pc growth expected by Bancolombia, the country's largest bank.
Most of the growth was attributable to increased household and retail trade, which grew by 4.6pc, a rise of 4.5pc in public spending and a 3.1pc hike in agricultural activity, driven by higher exports of fruits and fish, national statistics department Dane said. Manufacturing grew by 1.9pc over the year.
The mining and hydrocarbon sector contracted by 6.2pc. The coal subsector fell by 7.4pc in 2025 from a year earlier, while the oil and gas subsector declined by 4.3pc. The sharp contraction is a reflection of a heavy tax burden, restrictions on coal exports, falling exploration activity and deteriorating security conditions in key oil- and coal-producing regions.
Quarterly
The economy grew by 2.3pc in the fourth quarter from a year before, slowing from 3.6pc in the previous quarter and falling short of market expectations of 3pc due to a sharp contraction in the coal subsector and the oil sector.
The mining and hydrocarbons sector contracted for a seventh consecutive quarter, shrinking by 2.9pc in the fourth quarter from a year earlier. The decline follows a 5.7pc contraction in the third quarter and a 10.2pc decline in the second quarter.
Coal and crude exports have been subject to a 1pc surcharge since late January 2025 to finance more military and social spending in the northern Catatumbo region amid escalating violence in this region along the Venezuelan border. The tax ended in late 2025, but the administration of President Gustavo Petro reimposed the tax in a new emergency decree that was later halted by the constitutional court on 2 February.
The government also raised in May the withholding tax on coal miners to as much as 4.5pc, more than double the previous 2.2pc, adding financial pressure to a strained sector. Mining accounts for 2.4pc of Colombia's GDP and is the country's second-largest export sector after oil.
The oil subsector contracted by 2.9pc in the fourth quarter, following a 3.7pc decline in the third quarter and a 6.9pc decline in the second quarter, the steepest drop since the hydrocarbon sector began weakening in early 2024.
Colombia produced 746,400 b/d of crude in January-November, a 3.6pc decline from a year before, says the oil services chamber Campetrol.
