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The action followed the recent revision of Colombia's sovereign outlook to negative.

The government plans to gradually reduce the central government fiscal deficit by 3.4pp of GDP.

Breaking the fiscal rule without extraordinary cause may risk overspending, mounting debt, and a blow to Colombia’s economic credibility.

In the first three months of this year, Colombia shipped 2.3 million tons of product to the world, which meant a growth of 6%.

Agriculture led non-mining growth at 41.32% from January-April, per the ministry's analysis compared to last year.

Fitch attributes the move in part to fiscal decisions made by the national government that affect municipalities.

Rural employment hit a record high in March, up 120,000 (2.5%) from 2024, showing strength in the agricultural sector.

The suspension is due to the lack of a credible fiscal plan under Colombia's current presidential administration.

While the president's former foreign minister calls him a drug addict, a former president is being tried for bribery and obstruction of justice.

Bank of America's analysis underscores significant fiscal challenges in Colombia, leading to a recommendation against investment in the country's assets.