The Federación Nacional de Comerciantes (Fenalco) reported on Mar. 17 that a majority of Colombian businesses experienced stagnant or declining sales compared to the previous year, with growing concerns about economic uncertainty and regulatory burdens.
This update is significant as it highlights ongoing challenges for Colombia’s commercial sector, including reduced consumer spending, increased regulation, and potential impacts on employment and investment.
According to Fenalco’s March Economic Logbook, 65% of surveyed business owners said their sales either remained the same or fell compared to last year. Only 35% reported an increase. The balance of positive versus negative responses for January and February reached its lowest point in the past twelve months, indicating a decline in commercial activity.
Jaime Alberto Cabal Sanclemente, president of Fenalco, said this trend is linked to more cautious consumers facing higher expenses in education and health care. “This behavior is associated with a more cautious consumer, pressured by higher spending on education and health that has limited household purchasing power,” Cabal said. He added that internal statistics from major banks show credit card purchases slowed during the first two months of the year, confirming weaker consumption.
Some sectors performed better than others: vehicles, motorcycles, automotive services, and pharmacies saw relatively favorable results. The pharmaceutical sector’s growth may be tied to issues within the healthcare system that have forced patients to buy medications directly due to supply problems.
Looking ahead, Fenalco forecasts significantly lower retail growth for 2026 compared to last year’s 11.7% increase reported by Dane. Regarding expectations for the national economy, only 33% of business owners expect improvement; nearly half believe conditions will remain unchanged while 19% are openly pessimistic.
Cabal also commented on broader economic trends: “This weakening of commerce occurs in a difficult economic context; last year’s growth was just 2.6%. While government spending rose by 7.1% in 2025, investment grew only by 1.3%, showing a strong slowdown in productive capacity.” He noted that uncertainty over key policy areas—healthcare reform, fiscal policy, labor market changes—and rising physical insecurity are discouraging investment decisions.
Additionally, Fenalco highlighted an unprecedented regulatory burden: over one thousand new rules were issued within a single year—about twenty per week—which has increased legal uncertainty alongside delays in implementation and required consultations.
The organization warned that low investment levels—the lowest as a share of GDP so far this century—could lead to setbacks in job creation and threaten sustainable economic growth.
