Colombia has reached a major social milestone, with the country’s monetary poverty rate falling to 28% in 2025 — the lowest level since comparable records began.

According to new figures released by the National Administrative Department of Statistics (DANE), nearly 1.8 million Colombians rose above the poverty line over the past year. The number of people living in monetary poverty dropped from 16.2 million in 2024 to 14.4 million in 2025, marking one of the country’s largest annual improvements in more than a decade.

The decline reflects a steady recovery following the economic challenges brought on by the COVID-19 pandemic.

Several factors contributed to the improvement, including higher employment, rising household incomes, increases to the minimum wage, government social assistance programs, moderating inflation, and billions of dollars in remittances sent home by Colombians living abroad.

The report also showed encouraging progress in extreme poverty. The percentage of Colombians unable to afford even a basic food basket fell from 11.7% to 9.6%, meaning nearly one million people escaped extreme poverty during the past year.

Income inequality also improved, with Colombia’s Gini coefficient declining from 0.551 to 0.531, signaling a modest reduction in the country’s income gap.

Despite the positive news, major challenges remain. Rural communities continue to experience much higher poverty rates than urban areas, while cities such as Quibdó and Riohacha still record some of the highest poverty levels in the country.

The latest figures represent an important step forward for Colombia’s economy and social development. Maintaining that progress, however, will depend on continued job creation, sustainable economic growth, and investments that reach the country’s most vulnerable regions.