Colombia confronts fiscal challenges and record-low unemployment ahead of new administration

Future Finance Minister Miguel Gómez Martínez warned that Colombia’s public finances are "out of control," citing monthly revenues of about 28 trillion pesos against spending of roughly 40 trillion pesos. He described the past four years as a "parranda" and warned of a looming "guayabo" for the incoming government. Martínez highlighted concerns over transparency in public contracting, noting more than 500,000 service contracts worth around 33 trillion pesos signed in early 2026, and pledged a thorough audit to eliminate improper beneficiaries. He also criticized the current tax system as "diabolical" and vowed to focus on improving efficiency before proposing new taxes.

At the same time, the outgoing administration of President Gustavo Petro leaves the country with a historic 8.0% unemployment rate, the lowest in recent years. Women benefitted most, with female employment rising 6.1% compared to 2.6% for men, and the overall labor‑force participation reaching 64.9%. The article warns that the new president, Abelardo de la Espriella, faces a dilemma: a sizeable share of recent job creation stems from the public sector, and proposals to shrink the state workforce by 40% could jeopardise the employment gains if the private sector cannot absorb the displaced workers.