Colombia - Country Information
Colombia has quickly emerged as one of the most important economies in Latin America. Real GDP growth has averaged 4.7% in the past decade, though it slowed to 2% in 2016 due to low global oil prices1. The World Bank expects Colombia’s growth to strengthen over 2018-2019, driven by the recovery of non-oil exports, strengthening oil prices, and the government’s ambitious infrastructure programme.
Emerging middle class
Colombia’s rapidly-growing middle class is expected to comprise 37% of the population in 2020 and 46% in 2025, up from 30.5% in 20152. This means growing consumer demand, representing opportunities in sectors such as retail. The growth of the middle class is also expected to raise demand for quality infrastructure and utilities like transport, electricity and water.
Familiar growth sectors
Colombia’s major growth sectors are in line with our capabilities, giving Singapore firms excellent opportunities to display their strengths. These include oil and gas, with Colombia currently producing 886,000 barrels a day3, and infrastructure, with the government's plan to invest US$70 billion in infrastructure through 2035. Colombia is also consolidating its position as one of the most important IT providers in the region, with growing ICT development in IT, business process outsourcing (BPO), IT outsourcing, shared services and apps.
Venture to Colombia
With a welcoming policy towards foreign investment, Colombia is expected to remain one of Latin America’s most attractive markets. Foreign investors receive the same legal treatment as local investors. Colombia’s improving security and relative political stability has drawn increasing foreign direct investment in the energy, financial, infrastructure and mining sectors.
Colombia’s commitment to a broad range of institutional and structural reforms over the past few decades have strengthened its economy and made it one of the most business-friendly countries in Latin America. Notably, the government established the Private Council for Competitiveness to enhance public-private partnership in 2007.
1: CIA World Factbook, 2017
2: Colombia’s official investment agency PROCOLOMBIA, 2017
3: CIA World Factbook, 2016