The fiscal crisis that Colombia is going through is no longer an exclusive issue of technicians and economists, since little by little, its effects are felt on each invoice that reaches the home, in each credit that is paid and in each purchase that is financed; while the country faces an out of control, accompanied by high interest rates and persistent inflation, A combination that hits Colombian pockets from the front.
According to data from the Ministry of Finance, at the end of the first semester of 2025 the fiscal deficit toLanked 3.7% of GDP, equivalent to $ 69.4 billion, one of the worst records in more than two decades, even higher than that observed in the pandemic, when the economy endured an unprecedented emergency.
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To this is added that the Government Fund was reduced to historically low levels, with just $ 1.9 billion pesos in the most recent records, which is equivalent to covering a single week of wages of 1.4 million public servants in the country. Meanwhile, annual inflation is 5.1%, far from the 3% goal pursued by the Bank of the Republic.
Said in a simple way, this reality translates into higher quotas, more expensive loans and a borrowing panorama that is relieved too slowly and forces to take actions so that These challenges do not end up impacting people’s pocket or household economy.
The household economy will not be alien to the fiscal crisis.
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Given this, the firm Crowe CO prepared a report in which it explains in simple terms the scope of the situation and how families can face it and where its author, Lia Heenan, director of Global Corporate Advisory of the Company, is forceful to warn that this is not a minor phenomenon and that will impact all the actors of the national economy.
“The deficit today are more taxes tomorrow. For example, hidden tax is inflationthat is, what measures the cost of living. People sometimes do not see it or do not feel it, but pay it in each extract, in each loan and in each purchase that finances, ”he said.
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For Heenan, the message is clear and pointed out that what seems like a distant problem is, in reality, a chain that begins with the disorder in the state accounts and ends up making the daily life of citizens more expensive, since when the nation runs out of resources it must go out to borrow, offering higher rates to convince investors.
“That risk premium, which reflects the fragility of public finances, becomes the floor of all the rates of the economy. If the government costs more borrowing, mortgages are also increased, the mortgages, the Consumer loans and loans for business, ”said the spokeswoman for Crowe Co.
The household economy will not be alien to the fiscal crisis.
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The situation worsened with the recent decisions of the qualifying agencies. In June, S&P reduced Colombia to “BB” and Moody’s did the same weeks later, warning about overflowing public spending and income insufficiency. Each qualification reduction increases distrust, which further increases sovereign debt and, consequently, that of homes and companies.
In Crowe Co’s words, the only way to resist this impact is to replicate On a personal level what is expected of the State and opt for fiscal discipline, taking into account that just as the country requires clear goals and an adjustment in their accounts to recover confidence, citizens must make prudent decisions about their finances.
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Heenan suggests concrete actions that go from reviewing the cost of debts and renegotiate them if they exceed 20%rates, to evaluate the convenience of changing a mortgage in UVR for a fixed rate in pesos. It also recommends taking care of liquidity to the possibility of a new tax reform, converting unproductive inventories or assets into available capital and being cautious with new credits if the dollar or rates have abrupt rebounds.
“Each situation is different: the middle class, entrepreneurs and companies face differentiated impacts and must adjust their decisions according to their own realities. However, the principle is common and that is how the nation is obliged to order their finances to reduce the deficit, the Citizens must learn to shield their pocket in front of an adverse economic environment, ”he explained.
The household economy will not be alien to the fiscal crisis.
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In the midst of fiscal uncertainty, the lesson is evident and highlights that the country needs discipline to recover the path of sustainability and households must act with the same logic, spend less than you enter, take advantage of the periods of favorable rates to refinance debts and build a savings mattress that allows to resist future shocks.
Daniel Hernández Naranjo
Portfolio journalist
