Banco de Bogotá flags 9.4% fiscal deficit risk in Colombia's 2026 budget

Banco de Bogotá's economic research warns that Colombia's proposed 2026 budget (PGN) implies a fiscal deficit of 9.4% of GDP, the worst-case scenario, partly due to an assumption that the government will not act to reduce debt amortizations. The warning highlights rising fiscal sustainability concerns in Colombia, potentially pressuring the peso and local bond yields.