Colombia Ranks Fourth Globally for Macroeconomic Stability, Leading Latin America

According to The Economist's ranking, Colombia has successfully combined strong economic growth with a thriving stock market. This performance allows it to surpass G7 powers like Canada, France, and Japan in a year globally characterized by persistent inflation and worldwide growth around 3%.

Colombia Ranks Fourth Globally for Macroeconomic Stability, Leading Latin America

Autor: The Citizen

Original article: Colombia, única latinoamericana en el top 5: queda cuarta en ranking global de equilibrio macroeconómico


Colombia Ranks Fourth Globally for Macroeconomic Stability, Leading Latin America

In a world marked by economic slowdown and uncertainty, Colombia has secured a spot in the top 5 countries achieving the best macroeconomic balance macroeconomic performance in 2025.

The Ministry of Finance reported that Colombia placed fourth out of 36 nations in an international ranking evaluating annual economic performance.

This achievement establishes Colombia as the only Latin American economy in the top five of a list predominantly featuring European countries, all members of the Organisation for Economic Co-operation and Development (OECD).

According to the published data, the global ranking for 2025 was led by Portugal, followed by Ireland and Israel. Colombia secured the fourth position, outpacing economies like Spain, which rounded out the top 5 yet shares the fourth spot.

The Ministry emphasized the nature of this evaluation, explaining that it does not aim to classify the wealthiest or most developed economies but rather to identify those that demonstrated the best overall performance in macroeconomic balance for the year.

«This result is particularly significant as Colombia is the only country in Latin America ranking among the top five, in a list dominated by European and higher-income economies,» stated the Ministry of Finance in a press release.

Key Factors Behind Fourth Place: A Multidimensional Performance

The entity noted that several indicators explain the country’s top 5 position on the list published by The Economist, which is based on five macroeconomic indicators: inflation, inflation breadth, Gross Domestic Product (GDP), employment, and stock market performance.

Specifically, the evaluation considered several fundamental pillars:

Core Inflation: The ranking specifically measures inflation excluding food and energy (core) against a global target of 2%. For Colombia, the deviation was +3.3 percentage points. While this figure «underscores the ongoing challenges of price control,» the indicator positively reflects that inflation has not soared expansively compared to other economies facing more severe pressures, according to Radio Nacional de Colombia.

Reduced Inflation Pressure: A notable factor was the reduction in the breadth of inflation. The Latin American nation recorded an indicator of -6.7, which, according to official explanation, «means fewer goods and services are increasing in price above 2%, signaling stabilization that lessens the direct impact on households.»

Solid Economic Growth: In a challenging year, Colombia demonstrated robust expansion. In 2025, the country recorded a 3.4% GDP growth rate, one of the highest among the 36 evaluated economies. «This performance reflects an active economy, even in an adverse international environment,» highlighted the cited media.

Stock Market Confidence: The local capital market was one of the most dynamic in the study. The Colombian stock market surged by 43.8%, ranking among the largest advances. While it is recognized that «this does not represent the entire economy, the stock market is considered a gauge of expectations and confidence, with positive effects on investment and business financing.»

Labor Market Stability: Unlike other countries that experienced deterioration, the ranking found that Colombia does not rank among nations with severe labor crises. This indicates that economic growth was not achieved at the expense of employment.

The Economist highlighted that Colombia has successfully combined «strong economic growth» with a «flourishing stock market.» This achievement allows it to surpass G7 powerhouses like Canada, France, and Japan, in a year globally characterized by persistent inflation but with world growth around 3%.

Relevance on Regional and Global Stage

Colombia’s fourth-place finish holds significant weight for Latin America. Amid a landscape where many regional economies struggle with stagnation, high inflation, or political volatility, Colombia is presented as an example of macroeconomic management that has found a point of equilibrium despite difficulties.

The Ministry of Finance suggested that, in the context of the ranking, «being among the five best-performing economies does not mean that all problems are solved,» but it does demonstrate that Colombia has achieved an uncommon balance in the region by combining economic growth, signs of inflation control, high market confidence, and labor stability.

«This effort does not seek to identify a ‘perfect’ country but rather the economy that demonstrated the best overall performance of the year,» the ministry explained.

These international data align with recent metrics presented by the Government of Colombia and the National Administrative Department of Statistics (DANE), indicating the most robust recovery phase since the pandemic. Local annual inflation dropped to 5.30% in November, while the unemployment rate stood at 8.2% in October.

Colombian President Gustavo Petro reacted to the economic magazine’s publication via his X account, stating, «The Economist recognizes us as the fourth-best economy in the OECD. This is why genuine businesses from across the country and the world seek to engage with us.»


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