The Colorado Party consolidated power after the 2023 elections, securing majorities at all levels and weakening the opposition. Dominance over institutions, including the judiciary, has reduced checks and balances. The expulsion of an opposition senator and a new NGO law suggest early signs of democratic backsliding. Public support for democracy remains comparatively low, and openness to authoritarian governance is high.
Growth remained strong in 2023 and 2024, supported by prudent macroeconomic policy, low inflation and sustainable debt. The government aims to reduce the fiscal deficit to 1.5% of the GDP by 2026. The economic model continues to rely on agricultural exports and hydroelectric power.
The Peña administration seeks to modernize the state and improve administrative efficiency, which may create tensions with clientelistic networks. Social programs have been expanded, while redistribution is not a priority.
