Colombia’s credit boom is unsustainable

The Colombian credit boom appears to be unsustainable. Lending growth has been excessive, while new loans have been increasingly funded via wholesale foreign funding. We expect tighter macroeconomic policy – including interest rate hikes towards 6% – to ensure a soft landing next year. But the longer that the credit boom continues, the larger the eventual correction will be.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.