Colombia Economy Grows 1.65% in February

Colombia’s economic activity slowed further in February, with growth coming in below the 2% threshold for the third consecutive month, according to data released by the national statistics agency, Dane. The Monthly Economic Activity Indicator (ISE) rose 1.65% year-on-year in February 2026, marking a slight uptick from January’s revised figure but still reflecting subdued momentum in the broader economy. This follows two prior months of sub-2% growth, underscoring a prolonged period of modest expansion. Dane’s report noted that although certain sectors showed signs of recovery, overall output remains constrained by persistent headwinds, including weak external demand and cautious domestic investment. The agency emphasized that the February reading, though marginally higher than the prior month, does not yet signal a sustained rebound. Analysts have pointed to the cumulative effect of three straight months of sub-2% growth as a concern for policymakers monitoring inflation trends and labor market stability. The central bank has maintained a cautious stance on monetary policy, citing the need to balance price stability with support for fragile growth. The latest figures come amid broader regional comparisons, where several Latin American economies have posted stronger rebounds, driven by commodity exports and services sector resilience. Colombia’s performance, by contrast, continues to lag, particularly in manufacturing and construction, which remain below pre-pandemic trends. While the 1.65% increase represents a modest improvement over January, economists warn that without stronger productivity gains or a revival in consumer spending, the economy risks entering a prolonged stagnation phase. Dane is scheduled to release its next update on monthly economic activity in late March, which will provide further clarity on whether the recent uptick can be built upon.