Colombia’s president, Gustavo Petro, presented a report on Wednesday aimed at consolidating the narrative that the country is already transitioning toward a new economic model.
The document, prepared by the think tank Vida, was unveiled at a public event in which the president defended the results of his administration and argued that the ongoing productive transformation marks a break with the traditional model based on resource extraction.
The presentation was not only technical in nature, but also political. In a context of economic slowdown, inflationary pressures, and criticism from various sectors, Petro used the report to defend his administration and to question key decisions such as the central bank’s interest rate hikes, while insisting that structural changes require time to take hold.
At the same event, Petro announced that the country will withdraw from the international investment arbitration regime, following the recommendations of Nobel laureate Joseph Stiglitz and economist Thomas Piketty, “because the tribunals end up resolving disputes in favor of private parties.”
Colombia presents report on ‘Changing the Economic Model’
The report argues that Colombia is moving away from an economic model centered on fossil fuels and dependence on traditional exports, toward an economy based on knowledge, sustainable production, and the strengthening of the domestic market.
According to the presentation, the government has promoted policies aimed at diversifying the productive matrix and prioritizing sectors with higher added value. In this regard, Petro argued that measures such as the minimum wage increase—which rose 23.7% this year—and the strengthening of the so-called “living wage” have had positive effects on domestic demand, helping to energize the economy through consumption.
Likewise, the report highlights progress in social programs and in redirecting public spending toward sectors considered strategic within its development vision.
The document also states that this economic shift involves greater state intervention, with the aim of correcting historical inequalities and promoting a productive transition that reduces dependence on extractive activities.
This vision aligns with the principles of the president’s political project, which has emphasized the need to move beyond the neoliberal model in favor of a more equitable and sustainable one.
The think tank’s report acknowledges that the process of change has not been without difficulties. Petro spoke of “resistance” both within institutions and in economic sectors that, in his view, have benefited from the previous model.
Despite this, the president insisted that there are already signs of transformation. Among them, he mentioned progress in the energy transition, the strengthening of social programs, and the reconfiguration of priorities in public investment.
The president also argued that his government has not acted from an ideological standpoint, but rather on the basis of concrete results that, in his view, demonstrate a change in the country’s economic structure. However, analysts and opposition sectors have questioned the scope of these transformations and warn of fiscal risks and investor confidence concerns.
Una forma de evaluar la calidad distributiva de un período económico es observar quién creció más, no solo cuánto creció el promedio.
Entre 2022 y 2025, la clase trabajadora de nuestro país ha sido la mayor beneficiada ya que se demuestra que la variación de sus ingresos por… pic.twitter.com/dJke5wlk47— Centro de Pensamiento Vida (@Vida_Economia) March 25, 2026
The think tank Vida report
The think tank Vida report examines the economic decisions adopted during the current administration, as well as their impact on macroeconomic indicators, the labor market, productive investment, and income distribution. It also addresses aspects related to agrarian reform, reindustrialization, and the energy transition as key pillars of the transformation of the country’s productive model.
According to the document, the Colombian economy has recorded progress in sectoral recomposition, with greater dynamism in non-extractive activities and GDP growth of 2.6% in 2025, as well as a sustained reduction in inflation, which stood at 5.1% at the end of that year.
In labor terms, the report highlights an unemployment rate close to 8%, one of the lowest in recent years, along with the creation of more than 600,000 jobs in 2025 and a reduction in labor informality. It also underscores improvements in income levels and reductions in poverty, with more than 2.1 million people lifted out of monetary poverty between 2022 and 2024.
The analysis also points to progress in economic diversification, with growth in non-mining and energy exports surpassing traditional exports in value, as well as advances in sectors such as agribusiness, manufacturing, and the energy transition.
Tensions with monetary policy
One of the most controversial points of the president’s remarks was his criticism of high interest rates, repeating a clash he has maintained with central bank authorities for more than a year.
Petro questioned that, despite the government’s efforts to stimulate the economy, the tightening of monetary policy has limited access to credit and slowed investment, noting that these high rates explain elevated costs, for example, in home purchases.
The president also stated that these decisions have had negative effects on productive activity, especially in sectors such as industry and construction. It is worth recalling that the Central Bank has defended the rate hikes as a necessary measure to control inflation, which has been one of the country’s main macroeconomic challenges in recent years and remains above 5%.
This tension reflects a difference in approach between the executive branch and the monetary authority. While the government prioritizes growth and economic recovery, the central bank maintains its focus on price stability, generating debate over the direction of economic policy.
Colombia will exit the international investment arbitration regime
At the same forum, President Petro announced that Colombia will leave the international investment arbitration system “because the tribunals end up resolving disputes in favor of private parties.”
“Several countries have already announced or carried out their withdrawal from that type of arbitration, including the United States. I don’t see why Colombia should not do so,” he said.
In this way, the Colombian president responded to a letter he recently received, signed by 200 economists and academics from around the world, including Nobel laureate Joseph Stiglitz and economist Thomas Piketty.
In the letter, the experts ask President Petro to withdraw Colombia from the international investment arbitration regime, a model of justice that allows foreign investors to sue states in arbitral tribunals instead of national courts.
“Undoubtedly, I believe we have opened a global debate, not just a Colombian one. The letter from the 200 most prominent economists in the world, such as Stiglitz and Piketty, is important, asking us for a change in the rules of the game of investment arbitration, a topic that must be studied immediately,” he said.
US$14 billion at risk
The president warned that this is a model in which states generally lose and also cautioned that Colombia has 52 trillion pesos—approximately US$14 billion—at risk within that dispute system.
“Why did we agree to sign contracts in which, if there is a dispute, a private justice center in the contractor’s country—I am referring to international contracts—ends up deciding whether the country is right or not, and in general, we lose?” he said.
“At this moment, 52 trillion pesos are at risk. Colombia’s primary deficit is 63 trillion pesos—approximately US$17 billion—that is, if we were to lose all those tribunals over contracts signed with multinationals, the primary deficit would double,” he added.
In that regard, he emphasized that this risk has only been taken due to a “subservient attitude” on the part of the Colombian state, by “believing that there is no foreign investment in the country unless we give them all the guarantees for lawyers—not economists—to defeat us.”
The president also said that, unfortunately, some sectors of Colombia’s justice system do not provide sufficient guarantees and referred specifically to the Odebrecht case. “Colombian justice is unfortunately, in some sectors, purchasable—we saw it in the Odebrecht case—but there must be stronger guarantees,” he said.
For this reason, the head of state stated that within Colombia’s justice system there should be a court to handle this type of process, in a multilateral manner and with guarantees for all parties, both for the contracting entity and the contractor.