Gustavo Petro's government has been marked by a series of economic challenges and unfulfilled promises, according to analysts and former officials. Four years after taking office with a mandate for change, the administration has faced criticism over its inability to address deep-seated structural issues in the economy and society. The country inherited a model characterized by reliance on primary exports, low value addition, and high dependency on foreign savings and investment, which led to growing fiscal and external deficits. Despite campaign pledges to overhaul these conditions, the government has struggled to deliver meaningful reforms, leading to stagnant growth and worsening economic indicators. Between 2022 and 2025, the cumulative economic growth was just 5 percent, averaging 1.7 percent annually, one of the worst performances in more than three decades. Per capita GDP grew by only 2.2 percent during this period, averaging 0.7 percent annually. This stagnation is attributed to the government’s reluctance to support productive sectors that drive transformation and economic linkages. Key industries such as manufacturing declined by 2.3 percent, construction by 5.6 percent, and professional and technical services by just 1.1 percent. The mining and quarrying sector suffered the largest setback, declining by 7.5 percent. The energy transition policy, driven by what critics describe as a superficial environmental agenda, weakened national energy sovereignty. It forced the country to import nearly 35 percent of its gas consumption, significantly impacting state-owned oil company Ecopetrol, whose profits fell by more than 70 percent. The only notable growth came from the agricultural sector, increasing by 11.2 percent, largely due to the devaluation of the Colombian peso, which made imports more expensive and exports cheaper. However, this growth is not credited to the promised land reform, as official data contradicts claims of significant progress in redistributing land. The National Agency for Lands (ANT), tasked with implementing the land reform, operated with a budget six times larger than the previous government, yet achieved less than 12 percent of its targets. Of the 351,010 hectares distributed, 73 percent were provisional titles vulnerable to repossession, while only 27 percent had formal registration. The agency’s director, Felipe Harman, has been criticized for his extensive media presence despite the lack of tangible results. The government's dependence on foreign capital has worsened, with the current account deficit reaching nearly $11 billion in 2025, a 35 percent increase from the previous year. The trade balance recorded the largest deficit of the century, amounting to approximately $16 billion, a 52 percent rise from the prior year. Imports surged by 10 percent compared to a mere 1.3 percent growth in exports, highlighting the imbalance in trade dynamics. In a recent letter of resignation, Finance Minister Germán Ávila addressed President Gustavo Petro, reflecting on their long-standing relationship and acknowledging the challenges they faced together. Ávila, who served for 17 months until August 7, expressed that time ran out to complete the tasks set forth. He emphasized the rupture of neoliberal paradigms under Petro’s leadership, aiming to create an economy focused on life and its impact on social, economic, and productive realities. His message carried political weight, noting that those who seek to diminish hope forget that love endures far longer than hatred. Petro's administration continues to face scrutiny over its economic policies and the fulfillment of campaign promises. With new elections approaching, the focus shifts to whether the incoming government will address the unresolved issues left behind. The economic landscape remains uncertain, with the need for substantial reforms evident as the nation moves forward.
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