The credit profile of Colombia is constrained primarily by its weak fiscal profile and monetary management. The economy is heavily dependent on oil revenues, which poses risk due to fluctuating global prices. Further, a large informal sector limits the tax revenue base affecting flexibility for public investment. Additionally, inflation still remains high and current political instability may hinder the economy’s path towards potential.

However, credit profile benefits from relatively strong economic fundamentals, a comfortable external profile demonstrated through a narrowing current account deficit, and policies aimed at diversifying the economy.