The secretary general of the Organization for Economic Cooperation and Development (OCDE), Ángel Gurría, reported last week that the Colombian economy will reach a growth rate of 3.4% this year and is expected to reach 3.5% in 2020. The Economic Survey of Colombia, from which the annual figures are taken, reports that the GDP is rebounding with the help of domestic demand.
Investment in the form of infrastructure projects, recent tax reforms, and low interest rates have provided a positive environment for businesses to grow, and it has led to economic expansion. Inflation will hover around the target of 3%, and Colombia’s macro policies have narrowed the fiscal deficit to 1% of GDP.
Despite these favorable statistics, the OCDE (Organization for Economic Cooperation and Development) says the country is pushing for further measures regarding income and expenses to ensure future growth and to cover deficiencies in infrastructure, social programs, and peace process (with the FARC and other guerrilla groups).
Colombia has taken steps to strengthen its economy in recent years, and it has paid off as it now tops the list of the fastest growing large economies in Latin America. Its 3.4% growth rate is higher than the major economies of Mexico, Brazil and Chile, and it is trailed closely by Peru. Colombia has proven itself a safe, business and investor friendly economy that encourages innovation. A prime example is the city of Medellín, which was awarded the world’s most innovative city in 2013 in a competition sponsored by the Wall Street Journal and CitiGroup.
The Colombian economy is growing but still has untapped potential. Many businesses have already taken steps to capitalize on the opportunity by expanding to the region, and their investments have been worthwhile. Geographically, Colombia acts as a hub to the rest of Latin America that also boasts a highly educated workforce and business friendly policies. With Colombia’s eyes set on the future, look for it to lead Latin America as a model economy for years to come.
If you’re considering a business expansion to Colombia but not certain where to begin, contact Ongresso for a free consultation.
Head of Communications
As Head of Communications, I have a variety of responsibilities: client correspondence, client consulting, internal communications, marketing strategy, content creation, and sales/business development for the US and Canada.