Colombia's economy is highly dependent on exports of commodities. Fuels and extractive industries products 56 percent of total shipments.
In recent years, other products such as agricultural, food, and beverage (20 percent) and manufactured goods (19 percent) have been gaining importance.
Main export partners are: the United States (26 percent of total exports), Panama (10 percent), Netherlands (5 percent) and India, Brazil, Turkey and China (4 percent each). Others include: Ecuador, Mexico, Chile and Spain.
The economy is expected to expand by 1.3 percent this year as macroeconomic policies gradually normalize. The current account deficit is projected to increase slightly in 2024 to around 3.25 percent of GDP mainly on account of a recovery in imports, gradually converging to about 3.75 percent of GDP in the following years, largely financed by foreign direct investment. Over the medium-term, real GDP growth is projected to converge to 3 percent, supported also by large-scale infrastructure projects, further recovery in private investment, and the economic gains from integrating Venezuelan migrants.
Foreign direct investment (FDI) in Columbia
Foreign Direct Investment in Colombia increased by USD 3620 Million in the first quarter of 2024. Foreign Direct Investment in Colombia averaged USD 2293 Million from 1996 until 2024.
According to UNCTAD's World Investment Report 2023, FDI to Colombia grew by 82% to USD 17 billion in 2022, led by extractives; construction; finance; and transport, logistics and communication services. Over the same period, the stock of FDI reached USD 233.9 billion, around 68% of the country’s GDP. According to data by the Central Bank, the main investing countries are United States (21.3%), Spain (11.9%), Panama (11.4%), England (9.9%), Switzerland (6.1%); whereas the sectors receiving the most FDI are petroleum sector (22.8%), financial and business services (77.2%), manufacturing industries (17.0%), mining and quarrying (including coal - 16.0%), transportation, storage, and communications (13.8%). In the first three quarters of 2023, the country received around USD 12.7 billion in FDI (Central Bank).
Source : Trading Economics, International Monetary fund, UNCTAD, Lloyds Bank and Worldbox Business Intelligence
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