Colombia External Debt Surges Nearly $30 Billion to 55% of GDP

Colombia’s gross external debt reached US$252.168 billion in February 2026, representing 55% of its GDP, according to data released by the Banco de la República. This figure marks a significant year-on-year increase of nearly US$30 billion from February 2025. The public sector is the primary driver of this growth, with its external debt rising to US$157.130 billion (34.3% of GDP), while private-sector debt remained relatively stable at US$95.038 billion. Long-term obligations constitute the majority of the debt stock. The data contradicts earlier claims by President Gustavo Petro that his administration had reduced external debt, revealing a US$25.8 billion increase during 2025 alone. Despite the annual surge, recent months show slight relief as debt decreased by US$1 billion from January, attributed to debt swaps and a shift toward domestic bond issuance. With interest payments nearing US$1 billion monthly, the rising debt burden constrains fiscal policy ahead of the upcoming presidential election, signaling heightened sensitivity to foreign investor sentiment and currency fluctuations.