Colombia under President Abelardo de la Espriella confronts fiscal deficit, investor caution and mall expansion

New President Abelardo de la Espriella took office with Colombia facing a fiscal deficit of 6.4% of GDP in 2025, one of the highest in recent history. Analyst Juan Ramón Rallo attributes the shortfall to a sharp rise in public spending and warns that the government's plan to cut spending and raise taxes may fall short of its stated savings targets.

A survey of high‑net‑worth investors in Latin America by Sura Investments finds heightened caution amid political and economic uncertainty. Wealthy Colombians are increasingly shifting assets toward dollar‑denominated holdings, real estate and precious metals, with many preferring to rely on their own analysis when selecting investments.

President de la Espriella has also spoken of a broader agenda to restore national confidence and international prestige, emphasizing a return to “self‑esteem” for Colombia.

In his first cabinet appointments, former senator Rodrigo Lara Restrepo was named Minister of the Interior, recognized for his anti‑corruption work and long legislative experience.

Separately, Chilean retailer Cencosud announced a US$40 million investment to upgrade the Cenco Limonar mall in Cali, adding international brands such as Starbucks, CAT, Merrell, and planning further openings to compete with established local centers.