With inflation near 6.5%, Colombia's government would pay a negative real interest rate in 2026
An analysis argues that in 2026 the real interest rate paid by Colombia's government would be negative: with public debt of 1.192 trillion pesos (64.3% of GDP) at the end of 2025 and interest payments projected at 65 trillion pesos under the Medium-Term Fiscal Framework, the effective rate would be 5.4%, below inflation expected around 6.5%. Between 2020 and 2025 that fiscal effect is estimated at between 5.9 and 7.2 points of GDP.
In 40 seconds
- Public debt closed 2025 at 1.192 trillion pesos, equal to 64.3% of a GDP of 1.853 trillion pesos.
- The Medium-Term Fiscal Framework projects 65 trillion pesos in interest payments for 2026, an effective rate of 5.4%.
- With inflation near 6.5%, the real rate would be negative and the fiscal effect would exceed half a point of GDP.
Read the full story at La República
IASummary generated by artificial intelligence from a story by La República. It may contain errors: the original source prevails.
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