Colombian election: a left turn?
- Colombians will vote on 29 May to elect a new president for the 2022-2026 term. If no candidate secures more than 50% of the vote, a runoff election will be held on 19 June
- Polls show left-wing Gustavo Petro from the Pacto Histórico coalition holding the lead, but he is unlikely to win outright in the first round
- A runoff election will likely pit Petro against right-wing candidate Federico Gutiérrez from Equipo por Colombia. While still behind Petro in a hypothetical runoff election, Gutiérrez’s campaign is experiencing strong momentum and has managed to reduce the gap between the two contenders
- Although Petro’s policy platform differs significantly from Colombia’s traditionally market-friendly framework, we believe it will be hard for him to pass any radical reforms through the country’s highly-fragmented Congress
- A Petro victory will likely have an immediate effect on bond yields as investors may start questioning Colombia’s fiscal sustainability under his rule.