From Conflict To Prosperity And OECD Membership
Compared to the 1980s and 1990s, when the FARC-government conflict was at its height, Colombia is currently experiencing improved stability and economic prosperity. This is the result of the signing of the Peace Agreement with the FARC insurgency group in 2016. Moreover, the country has an improving security environment over the preceding 20 years. Infrastructure, tourism, education, and rural development are some of the important sectors that this post-conflict era is fostering development in.
In April 2020, Colombia formally joined the Organization for Economic Cooperation and Development (OECD) as a full member. Colombia committed to its membership that it will concentrate on lowering the informality of the labor market, improving worker rights, and strengthening protections for union activists.
Colombia’s Infrastructure Boom
There will be a demand for equipment for the construction of public roads and airports, water treatment and supply, electric power generation, due to Colombia’s extensive ongoing infrastructure projects. Along with increasing need for services linked to river dredging, airport master plans, urban planning, and other construction and design services, new infrastructure initiatives will also increase demand for these services.
Colombia is one of four Latin American countries authorized by U.S. Customs and Border Protection (USCBP) to use the Global Entry Program. This provides expedited screening and processing of low-risk international visitors at airports in the United States. Former President Duque also signed an agreement with the USCBP in 2019 for a preclearance facility at El Dorado Airport in Bogota. That would allow Colombian travelers to land in the United States as if they had flown on a domestic flight. Both programs will allow for an increase in business and leisure travel by Colombians to the United States. Colombia continues to work with the U.S. government on the details of this program, particularly funding for the preclearance installation.
Resilient Colombian Economy
Worldwide supply shocks have decreased, but demand has remained high. As a result, growth has risen above expectations, the likelihood of a short-term recession has decreased, and headline inflation has performed better. According to projections, global growth would reach 2.8% in 2023 and 3.3% in 2024.
The Colombian economy continued to operate at exceptional levels in 2022. Not just when GDP is considered, which grew 11% in 2021 and 7.5% in 2022, but also when labor, external, and financial factors are taken into account. However, certain symptoms of a slowdown have been apparent since the end of 2022. Most notably in consumer spending on durable goods and the property market.
3 Promising Sectors In Colombia
Colombia has immense potential in renewable energy sources such as solar, wind and biomass. The government took steps to promote clean energy initiatives and attract investment in this sector. There is an increasing demand for renewable energy solutions both domestically and internationally. Therefore, businesses specializing in renewable energy technologies, project development, and energy efficiency can take advantage of opportunities in Colombia’s emerging green energy market.
Agribusiness and Food Processing
Colombia has supportive agricultural conditions and a varied climate that allows for the cultivation of a wide range of crops and agricultural products. The country has focused on modernizing its agricultural sector and improving its productivity. There is a growing demand for high-quality processed foods, organic products, and agricultural inputs. Companies involved in food processing, agricultural machinery, irrigation systems, and organic farming methods are finding lucrative opportunities in Colombia’s agricultural sector.
Tourism and Hospitality
Colombia’s tourism industry has grown fast in recent years, with growing numbers of international tourists exploring the country’s rich cultural heritage, natural landscapes, and historic sites. Moreover, Colombia has invested in infrastructure development, promoted eco-tourism, and improved security measures. There is a demand for quality accommodation, tour operators, transportation services, and specialized tourism services. Entrepreneurs in hospitality, adventure tourism, eco-lodges and cultural experiences can take advantage of Colombia’s dynamic tourism market.
Colombia’s journey from conflict to prosperity is characterized by enhanced stability and economic growth. The country, which joined the OECD in 2020, has made commitments to formalize the labor market and strengthen workers’ rights. An infrastructure boom is creating opportunities in sectors such as transportation, energy and security. In addition, Colombia’s inclusion in the Global Entry Program is encouraging increased travel and trade with the United States. With promising sectors in renewable energy, agribusiness, and tourism, Colombia’s future is bright.