Economic challenges and tensions mark the midpoint of Gustavo Petro's term.

President Gustavo Petro is at a crucial point in his term, reaching the midpoint of his four-year mandate in a context of economic tensions and structural challenges that define his administration. His contentious approach to the old economic order has been a recurring theme, causing friction with a traditional model that, although criticized, has been respected in its essence by the current government. In this context, Colombia's economic growth, projected at a modest 2% for this year, reflects a dynamic that many consider insufficient, given the promises of change and improvement that were expected at the start of his administration. Munir Jalil, chief economist for the Andean region at BTG Pactual, points out that despite the criticisms, the Colombian economy has shown signs of recovery. However, there are questions about whether the government has effectively contributed to this process. This duality of efforts, between the need for structural change and economic responsibility, has characterized President Petro's administration, which has maintained critical discourses towards capitalism while simultaneously navigating the waters of economic pragmatism. One of the most contentious points of his administration has been the management of public debt and the fiscal deficit. Following the devastating impact of the pandemic, the government has been forced to make difficult decisions, such as eliminating subsidies for gasoline and diesel. Jorge Iván González, former director of the National Planning Department, warns about the asymmetry that will occur in the budget, where more resources will be allocated to debt service than to infrastructure investment. This situation, described as "totally crazy," raises serious doubts about the country's fiscal viability in the near future. The hydrocarbons sector, which has historically been the pillar of the Colombian economy, is in a state of uncertainty. "Energy transition" policies have led to a reduction in investment in oil exploration, which many analysts consider a critical mistake at a time when other nations are capitalizing on their resources. This lack of clarity regarding the future of hydrocarbons has generated distrust among investors and weakened the country's economic prospects. At the same time, the conflict between Petro's government and the private sector has been palpable. His distrust of private companies translates into an approach that seeks to limit their influence in the economy. This has led to the most advanced reforms in this regard targeting health and pensions, while other crucial sectors, such as energy and infrastructure, remain in a limbo of uncertainty. The lack of dialogue and trust between the government and the private sector could have significant repercussions on the country's ability to attract investments. In a context where private investment has contracted by 24% in the second quarter of this year, it is evident that the lack of clarity in economic policies and the climate of distrust have affected the growth dynamic. Munir Jalil maintains that although the current government has prioritized boosting the public sector, this has not been sufficient to generate infrastructure projects that have historically been fundamental for economic growth. As the government moves into its last two years, the task of achieving greater equity and improving income distribution becomes increasingly monumental. Although Petro has announced a reduction in the poverty rate, the overall outlook remains bleak, with a large part of the population still living in precarious conditions. The purchasing power of Colombians has been affected by inflation, which, although showing declining trends, continues to take a toll on families in their daily lives. The tax reform, another of the president's proclaimed achievements, has faced criticism both within and outside the ruling party. The lack of clarity in methods to achieve sustainable economic growth has generated distrust among investors, who view uncertainty as a critical factor in decision-making. This atmosphere of distrust has been exacerbated by Petro's constant verbal attacks on the private sector, leading many to question his commitment to an economic model that includes all actors. The challenge facing Petro is not only economic but also political and social. Polarization and distrust towards institutions and productive sectors are realities that have marked his administration. As the country navigates a sea of challenges, the president will need to find a way to articulate his transformative visions with economic reality, seeking a balance that allows progress without sacrificing stability. In this sense, the president's discourse must evolve towards one that fosters collaboration and dialogue. History has shown that profound changes require broad consensus and active participation from all sectors of society. If Petro wishes to leave a lasting legacy, it will be essential for him to find a way to build bridges with the private sector and other key actors, rather than maintaining a confrontation that could limit his ability to implement the urgent reforms the country needs.