Andean Group - February 2026

COLOMBIA | Interest rate hiked. Colombia’s central bank (Banrep) raised its benchmark interest rate by 100 basis points to 10.25% on 30 January. This was the first increase to the rate since April 2023, and it comes after it had been held at 9.25% since April 2025. Banrep noted in a statement that annual inflation in 2025 was 5.1% – down from 5.2% in 2024, but above the target rate of 3%. The bank said that analysts’ median inflation forecast for 2026 had risen from 4.6% to 6.4%. Meanwhile, economic activity was strong in the final quarter of 2025, due to strong internal demand resulting from private and public spending, bringing total estimated growth last year to 2.9%, according to Banrep. The statement also noted “elevated” uncertainty about the external economic situation, highlighting “risks associated with an escalation of trade conflicts, US migration measures, geopolitical conflicts, and the perception of Colombia’s sovereign risk”.

ECUADOR | Progress on UAE trade deal. On 4 February, Ecuador and the United Arab Emirates (UAE) concluded technical negotiations for a comprehensive economic partnership agreement (Cepa). The talks, which began in August 2025, covered 19 areas, including market access, rules of origin, services, intellectual property, and cooperation. According to a statement from Ecuador’s ministry of production, foreign trade and investment, the agreement would see 98% of Ecuadorean goods that were covered in the negotiations given preferential access to the Emirati market, with tariffs to be immediately eliminated for 75% of those products, including key exports such as shrimp, fresh roses, banana, frozen vegetables, and processed tuna. The statement noted that Ecuador’s exports to the UAE totalled US$1.37bn from 2020-2024, and it said that exports could rise to up to US$1bn a year by 2030 once the agreement comes into force.

Andean countries: inflation rate
Percentage variation (year-on-year)

Andean countries: GDP growth (%)
Quarterly figures are year-on-year growth