Colombia pursues trade recovery with Venezuela and manages economic shifts

Colombia is working to revitalize bilateral trade with Venezuela, with Ambassador Jorge Jaller aiming to recover trade levels previously reaching approximately $7.2 billion. Potential sectors for growth include tourism, agro-industry, hydrocarbons, retail, and banking. To support this, Bancóldex has implemented new financing schemes, including a $100 million credit line to provide guarantees for Colombian exporters through coordinated mechanisms with Venezuelan private banks such as Banco Nacional de Crédito and Banco Provincial.

Domestically, the Banco de la República has launched a second auction to purchase $400 million in US dollars to strengthen international reserves. This strategy aims to build liquidity against global economic shocks without increasing exchange rate volatility.

Regarding economic outlook, Davivienda has adjusted its 2026 growth projection for Colombia to 2.5%, though it anticipates a moderation to 2.3% in 2027 due to fiscal adjustments and the economic impact of a recent high-magnitude earthquake. Meanwhile, authorities are monitoring water levels in reservoirs as the El Niño phenomenon threatens potential water rationing in Bogotá.