Political and legal uncertainty in Colombia, deteriorating security conditions, fiscal volatility, macroeconomic instability, and the lack of clear policies appear to be taking a toll on the country. To begin with, investors are increasingly perceiving that the rules of the game can change without warning, raising overall risk levels. U.S. investment in Colombia fell 38% in 2025.
In addition, the expansion of illegal economies and rising violence in several regions are driving up operational costs and risks. At the same time, fiscal volatility and uncertainty surrounding economic reforms are prompting caution among international investors, compounded by a lack of certainty, security, and stability in public policy.
Warning sign for Colombia’s economic environment
All of these factors have combined into a troubling outcome: U.S. investment in Colombia fell 38% in 2025. This was highlighted by María Claudia Lacouture, president of the Colombian American Chamber of Commerce, who said the figure should be interpreted as a warning sign for the country’s economic environment and for international investor confidence.
Data from the Bank of the Republic showed that capital flows from the United States to Colombia reached $3.375 billion last year, representing a 38% drop compared to 2024, when U.S. investment totaled $5.41 billion. The decline highlights a significant contraction in the country’s main source of foreign capital.
“The 2025 foreign direct investment results should not only serve as a warning, but also as a call for a critical reading and decisive actions to counteract this trend,” Lacouture said. “When the country’s main investor reduces its investment by 38%, as in the case of the United States, what is at stake is not only capital flows, but also the international perception of Colombia’s stability and reliability.”
According to the senior executive, Colombia “has clear advantages to attract investment, but we are neutralizing them with signals of regulatory and fiscal uncertainty. The problem is not potential; it is predictability and responsibility. And without predictability, there is no sustainable long-term investment.”
United States remains Colombia’s leading investor
To illustrate her concern, Lacouture used a metaphor: “It is like building on quicksand: no matter how much effort and resources are invested, instability ultimately takes its toll on the country—especially on the well-being of Colombians—by failing to provide the solid foundations needed to sustain steady growth and generate opportunities for all.”
In the first half of 2025, U.S. foreign direct investment in Colombia had already fallen by 15%, dropping from $2.6635 billion in 2024 to $2.2686 billion in the same period the following year, according to figures from the Bank of the Republic. It marked the second consecutive year of declines in first-half figures, signaling a worrying trend.
According to central bank data cited by the economic daily Portafolio, the United States remains the leading investor in Colombia despite last year’s drop, accounting for 29.4% of total foreign direct investment received by the Colombian economy in 2025. Spain ranked second with $2.429 billion, followed by Panama with $1.173 billion.