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All values, unless otherwise stated, are in US dollars.
The economy of Colombia is the fourth largest in Latin America as measured by gross domestic product[17] and the third-largest economy in South America.[18][19]Colombia has experienced a historic economic boom over the last decade. Throughout most of the 20th century, Colombia was Latin America's 4th and 3rd largest economy when measured by nominal GDP, real GDP, GDP (PPP), and real GDP at chained PPPs. Between 2012 and 2014, it became the third largest in Latin America by nominal GDP. As of 2024, the GDP (PPP) per capita has increased to over US$19,000,[20] and real gross domestic product at chained PPPs increased from US$250 billion in 1990 to nearly US$800 billion.[4] Poverty levels were as high as 65% in 1990, but decreased to under 30% by 2014, and 27% by 2018. They decreased by an average of 1.35% per year since 1990.[21]
Petroleum is Colombia's main export, representing over 45% of Colombia's exports. Manufacturing represents nearly 12% of Colombia's exports and grows at a rate of over 10% a year. Colombia has the fastest growing information technology industry in the world, and has the longest fibre optic network in Latin America.[22] Colombia also has one of the largest shipbuilding industries in the world outside Asia.
Modern industries like shipbuilding, electronics, automobile, tourism, construction, and mining grew dramatically during the 2000s and 2010s. However, most of Colombia's exports are still commodity-based. Colombia is Latin America's 2nd-largest producer of domestically made electronics and appliances, following Mexico. Colombia had the fastest-growing major economy in the Western world in 2014, behind only China worldwide.[23][24]
Since the early 2010s, the Colombian government has shown interest in exporting modern Colombian pop culture to the world (which includes video games, music, films, television shows, fashion, cosmetics, and food) as a way of diversifying the economy and entirely changing the image of Colombia. This has inspired a national campaign similar to the Korean Wave.[25] Colombia is only behind Mexico in cultural exports and is already a regional leader in cosmetic and beauty exports.[26]
Wealth is poorly distributed and Colombia is among the most unequal societies in the world, with a Gini index of approximately 0.̟6. For example, according to the World Bank, in 2010, the richest 20% of the population owned 60.2% of the wealth and the poorest 20% only 3%, and 15.8% of Colombians lived on less than $2 a day.[27][28] In 2021, more than 54% of Colombian families are food insecure and more than 560,000 children under the age of five are chronically undernourished.[29]
The informal economy is estimated at 47% in 2020. There is no welfare state in Colombia, which has almost no unemployment or pension insurance system. As a result, only one million elderly people have pensions (and five million are without)[30] and social assistance is very low. Many people in their 70s and 80s are forced to continue working or beg. [citation needed] The country is said to be the most unequal in the Organisation for Economic Co-operation and Development (OECD).
European explorers reached what is now Colombian territory as early as 1510 in Santa María Antigua del Darién (in present-day Chocó department). For the next couple of decades Colombia, and South America in general, remained largely unexplored. From 1533 to 1600, Europeans began expeditions into the interior of current Colombia. The in of these expeditions was mainly to conquer new lands and exploit village resources. Legends of El Dorado that reached Spaniard explorers continued to fuel exploration and raiding of Indian villages.
During the 16th and 17th centuries, the colonial settlements in Colombia served purposes of extraction of precious metals and other natural resources, and later slavery trade. This economic arrangement left the Colony with little room for building solid institutionality for economic development. The main non-extractive institutions emerging in this centuries were the fortified port of Cartagena and the Viceroyalty of New Granada. Cartagena developed military defenses mainly out of necessity from frequently having to deal with pirate attacks. A primitive form of colonial administration was organized in Santa fé de Bogotá with the Viceroyalty of New Granada, especially under the tenure of José Solís Folch de Cardona (1753–1761), who conducted a census and built roads, bridges and aqueducts.
Following the Thousand Days' War (1899–1902), Colombia experienced a coffee boom that catapulted the country into the modern period, bringing the attendant benefits of transportation, particularly railroads, communications infrastructure, and the first major attempts at manufacturing.
20th century
Colombia's consistently sound economic policies and aggressive promotion of free trade agreements in recent years have bolstered its ability to weather external shocks. Real GDP has grown more than 4% per year for the past three years, continuing almost a decade of strong economic performance.[6]
In 1990, the administration of President César Gaviria Trujillo (1990–94) initiated economic liberalism policies or "apertura economica" and this has continued since then, with tariff reductions, financial deregulation, privatization of state-owned enterprises, and adoption of a more liberal foreign exchange rate. Almost all sectors became open to foreign investment although agricultural products remained protected.
The original idea of his then Minister of Finance, Rudolf Homes, was that the country should import agricultural products in which it was not competitive, like maize, wheat, cotton and soybeans and export the ones in which it had an advantage, like fruits and flowers. In ten years, the sector lost 7,000km2 to imports, with a critical impact on employment in rural areas.[31] Still, this policy makes food cheaper for the average Colombian than it would be if agricultural trade were more restricted.
Until 1997, Colombia had enjoyed a fairly stable economy. The first five years of liberalization were characterized by high economic growth rates of between 4% and 5%. The Ernesto Samper administration (1994–98) emphasized social welfare policies which targeted Colombia's lower income population. These reforms led to higher government spending which increased the fiscal deficit and public sector debt, the financing of which required higher interest rates. An over-valued peso inherited from the previous administration was maintained.
The economy slowed, and by 1998 GDP growth was only 0.6%. In 1999, the country fell into its first recession since the Great Depression. The economy shrank by 4.5% with unemployment at over 20%. While unemployment remained at 20% in 2000, GDP growth recovered to 3.1%. Unemployment in 2020 has improved compared to two decades ago to 12.20%.
The administration of President Andrés Pastrana Arango, when it took office on 7 August 1998, faced an economy in crisis, with the difficult internal security situation and global economic turbulence additionally inhibiting confidence. As evidence of a serious recession became clear in 1999, the government took a number of steps. It engaged in a series of controlled devaluations of the peso, followed by a decision to let it float. Colombia also entered into an agreement with the International Monetary Fund which provided a $2.7 billion guarantee (extended funds facility), while committing the government to budget discipline and structural reforms.
21st century
By early 2000 there had been the beginning of an economic recovery, with the export sector leading the way, as it enjoyed the benefit of the more competitive exchange rate, as well as strong prices for petroleum, Colombia's leading export product. Prices of coffee, the other principal export product, have been more variable.
Economic growth reached 3.1% during 2000 and inflation 9.0%. Inflation by 2021 has stabilized at 3.30%.[32] Colombia's international reserves remained stable at around $8.35 billion in the year 2000 growing to $58.57 billion by 2021,[33] and Colombia has successfully remained in international capital markets. Colombia's total foreign debt at the end of 1999 was $34.5 billion with $14.7 billion in private sector and $19.8 billion in public sector debt. Major international credit rating organizations had dropped Colombian sovereign debt below investment grade, primarily as a result of large fiscal deficits, which current policies are seeking to close. As of 2021 Colombia has recovered its investment grade rating.
Former president Álvaro Uribe (elected 7 August 2002) introduced several neoliberal economic reforms, including measures designed to reduce the public-sector deficit below 2.5% of GDP in 2004. The government's economic policy and controversial democratic security strategy have engendered a growing sense of confidence in the economy, particularly within the business sector, and GDP growth in 2003 was among the highest in Latin America, at over 4%. This growth rate was maintained over the next decade, averaging 4.8% from 2004 to 2014.[34]
According to figures from Dane, monetary poverty went from 37.2% in 2010 to 26.9% in 2017, which indicates a higher income for the most vulnerable households. During the Santos government, there was an inflationary period that was also a response to the strong external shock of the fall in oil prices. It was a period of contained instability, although inflation increased, no company declared bankruptcy and there was no instability in the financial system.[35]
The Santos period managed an increase in GDP of 4% in 2010, which peaked in 2011 to 6.6%. Thereafter it remained at 4% in 2012, 4.9% in 2013 and 4.4% in 2014. In 2011, Colombia recovered it's BBB− investment grade, which was raised in 2013 to BBB. As a result of sustained growth, during the eight years of the Santos government, 3.5 million jobs were created, while 5.4 million people were lifted out of poverty.[36]
The focus of Santos' second term was to reach a peace agreement with the FARC whose economic effects, according to assumptions, could imply a GDP growth of up to two additional percentage points. Santos' best legacy is precisely the one related to security since this will have an effect in the medium and long term in terms of investment decisions, job creation, and the beginning of a great revolution in the country's infrastructure: war prevented development in the most affected areas for centuries.
Colombia's President Iván Duque withdrew a controversial tax reform bill following four weeks of huge protests across the country starting 28 April 2021.[37] In 2021, Colombia registered an increase in Gross Domestic Product of more than 10%, as a result of a rebound effect that derived from the 6.8% collapse a year earlier, caused by the economic closures decreed to stop the coronavirus pandemic. The pandemic exacerbated poverty. In 2021, official figures showed that 39% of Colombians – out of a population of 51.6 million inhabitants – were in a condition of monetary poverty. Although it shows a slight improvement compared to 2020 (42.5%), it meant a setback of at least a decade.[38]
The greatest increase in the value of the debt also occurred in the Duque government, according to figures from the Bank of the Republic. Between 2020 and 2021 the balance increased by 17 billion dollars, and from 2019 to 2020 it increased by 16 billion. That figure, which corresponds to a deficit of 7.1 percent of GDP, was the debt that the Central National Government or GNC (the State without its companies or regional entities) had in 2021, according to the fiscal closing bulletin.[39]
In the Duque government, specifically between May and June 2020, 66.7 percent of the country's gold reserves were sold, which went from 710.5 to 237.4 million dollars. The decision was made by the Bank of the Republic. The sale received criticism because although it was done at a time of rising prices – after five years in which this did not happen – it was before gold reached a record price.[40]
The COVID-19 recession had a profound impact on Colombia’s economy, with significant disruptions to GDP components, unemployment, and inflation. Household consumption, which is a key driver of the economy, saw the sharpest decline, dropping by 20% in the second quarter of 2020 due to lockdowns, income uncertainty, and limited mobility.[41] Despite a partial recovery in Q3 2020, high unemployment (peaking at 19.9%)[42] and ongoing uncertainties slowed the recovery of consumer spending. Investment also decreased during the pandemic, with businesses reducing capital expenditures amid uncertainty (-31.6%).[41] Although investment exhibited a significant recovery in Q3 2020, reaching 26%, the drop in global demand for Colombia’s exports—particularly oil and coal—influenced a slow recovery as indicated by 10% growth rate of real GDP following a 16% trough.[41] Government spending rose in response to the pandemic, driven by fiscal stimulus and social aid programs, helping to stabilize the economy.
The deterioration of the labor market severely affected sectors such as retail, hospitality, and informal employment, deepening the economic contraction.[41] Although unemployment gradually decreased to 14.75% by early 2021, it stayed significantly above the pre-pandemic levels. Inflation, on the other hand, remained low in Q1 2020, but turned into deflation for the remaining of 2020 and the first quarter of 2021, signaling a significant weakened aggregate demand.[41] Overall, Colombia’s real GDP contracted by about 16% in Q2 2020, due to declines in household consumption and investment.[41] While there were modest signs of recovery by early 2021, the combination of high unemployment and deflation continued to hinder the full economic rebound.[43]
In the early 21st century, the Colombian economy grew in part because of austere government budgets, focused efforts to reduce public debt levels, an export-oriented growth strategy, an improved security situation in the country, and high commodity prices. Growth slowed to 1.4 percent in 2017, and then increased to 3.3 percent in 2019.[44]
President Uribe, who was in office from 2002 to 2010, examined opportunities including reforming the pension system, reducing high unemployment, achieving congressional passage of a fiscal transfers reform, and exploring for new oil or producing ethanol. Colombia's Gini coefficient, a measure of inequality, was one of the highest in South America.[45] International and domestic financial analysts warned of the growing central government deficit, which hovered at 5% of GDP. Nonetheless, confidence in the economy grew.[6]
Colombia has a track record of prudent macroeconomic management.[46]
The middle class will represent 25% of the population in 2020 according to a survey by the daily newspaper El Tiempo. Official data indicate that 42.5% of the population lives below the poverty line. The social elevator is one of the slowest in the world, as it takes an average of eleven generations for a family to rise out of poverty.[47]
The tax system is one of the causes of Colombia's deep social inequalities. The income tax (IRPP) is not very progressive (almost all taxpayers pay it at a rate of between 19% and 28%, and the rate rises only slightly thereafter) and is levied mainly on salaries, with other categories of income being largely underreported. Redistribution through the Colombian tax system is thus the lowest in Latin America, even though it is on average very limited.[48]
Development of main indicators
The following table shows the main economic indicators in 1980–2019 (with IMF staff stimtates in 2020–2025). Inflation below 5% is in green.[49]
Agriculture, livestock, hunting, forestry and fishing (6.3%)
Mining and quarrying (6.1%)
Manufacturing (10.9%)
Electricity, gas and water supply industry (3.3%)
Construction (7.2%)
Trade, hotels, restaurants and repairs (12.2%)
Transport, storage and communications (7%)
Financial services industry (21.2%)
Social services sector (15.6%)
Total taxes (10.2%)
Composition of the Colombian GDP by demand side. Second quarter of 2015.[50]
Household final consumption expenditure
64.72%
Government final consumption expenditure
17.24%
Gross fixed capital formation
28.30%
Inventory investment
0.41%
Exports
15.32%
Imports
26.98%
Colombia – macroeconomic indicators 2002–2011
Labor rights
On 8 June 2020, the newly formed Employment Mission (Misión de Empleo) met for the first time to discuss labor reforms that it intended to propose to Congress. Some of these reforms had been desired for years, and others had come into starker view during the coronavirus pandemic.[51]
The legal working hours are 48 hours per week. However, the informal economy accounts for almost half of the workers, who are therefore not covered by labor laws.
Palm plantation in Magdalena. Colombia is one of the top five producers of palm oil in the world.Sugar cane in Valle del Cauca. Colombia is one of the top 10 sugarcane producers in the world.
Colombia produced, in 2018, 36.2 million tons of sugarcane (7th largest producer in the world), 5.8 million tons of palm oil (5th largest producer in the world), 3.7 million tons of banana (11th largest producer in the world) and 720 thousand tons of coffee (4th largest producer in the world, behind Brazil, Vietnam and Indonesia). Although its neighbor Brazil is the largest producer of coffee in the world (3.5 million tons produced in the same year), the advertising carried out by the country for decades suggests that Colombian coffee is of higher quality, which generates greater added value to the country's product.[53] In the same year, Colombia produced 3.3 million tons of rice, 3.1 million tons of potato, 2.2 million tons of cassava, 1.3 million tons of maize, 900 thousand tons of pineapple, 670 thousand tons of onion, 527 thousand tons of tomato, 419 thousand tons of yam, 338 thousand tons of mango, 326 thousand tons of avocado, in addition to smaller productions of other agricultural products such as orange, tangerine, lemon, papaya, beans, carrot, coconut, watermelon etc.[54]
The share of agriculture in GDP has fallen consistently since 1945, as industry and services have expanded. However, Colombia's agricultural share of GDP decreased during the 1990s by less than in many of the world's countries at a similar level of development, even though the share of coffee in GDP diminished in a dramatic way. Agriculture has nevertheless remained an important source of employment, providing a fifth of Colombia's jobs in 2006.[55]
The most industrially diverse member of the five-nation Andean Community, Colombia has four major industrial centers—Bogota, Medellin, Cali, and Barranquilla, each located in a distinct geographical region. Colombia's industries include textiles and clothing, particularly lingerie, leather products, processed foods and beverages, paper and paper products, chemicals and petrochemicals, cement, construction, iron and steel products, and metalworking. Its diverse climate and topography permit the cultivation of a wide variety of crops. In addition, all regions yield forest products, ranging from tropical hardwoods in the hot country to pine and eucalyptus in the colder areas.
Livestock in Córdoba. Colombia is one of the 20 largest producers of beef in the world.
In the production of beef and chicken meat, Colombia is among the 20 largest producers in the world.[56]
In Colombia, the exploitation and breeding of cattle is carried out on small farms and large farms. Black-eared white, casanareño, coastal with horns, romosinuano, chino santandereano and hartón del Valle, are the Colombian breeds with the highest production.[57]
In 2013, livestock occupied 80% of productive land in Colombia. The livestock sector is one of the most outstanding in areas such as Caribbean Region, where seven departments have livestock as their primary vocation.[58] Also in Antioquia, where there is the largest cattle inventory in the country, the department had that year 11% of the head of cattle in Colombia, and according to the livestock inventory, in 2012 Antioqueños counted around 2,268,000 head of cattle.[59]
Also in 2013, the bovine herd in Colombia reached 20.1 million head of cattle, of which 2.5 million (12.5%) were milking cows. In addition, the country's total milk production was 13.1 million liters.[60]
On the other hand, the increase in imports of pork meat, the high prices of inputs and the slowdown in the national economy, produced a crisis in the raising of pork in Colombia in 2015.[61]
The World Bank lists the main producing countries each year, based on the total value of production. According to the 2019 list, Colombia has the 46th most valuable industry in the world (US$35.4 billion), behind Mexico, Brazil, Venezuela and Argentina, but ahead of Peru and Chile.[62]
Manufacturing
Domestic appliances
Although Colombia has been producing domestic appliances since the 1930s, it wasn't until the late 1990s that Colombian corporations began exporting to neighboring countries. One of Colombia's largest producers of domestic appliances, HACEB has been producing refrigeration since 1940. Some domestic corporations include: Challenger, Kalley, HACEB, Imusa, and Landers. In 2011, Groupe SEB acquired Imusa as a form to expand to the Latin American market.[63] Colombia also manufactures for foreign companies as well, such as Whirlpool and GE.[64] LG has also been interested in building a plant in Colombia. Colombia is also Latin America's 3rd largest producer of appliances behind Mexico and Brazil and is growing rapidly.
Electronics
Colombia is a major producer of electronics in Latin America, and is South America's 2nd largest high-tech market.[65] Colombia is also the 2nd largest producer and exporter of electronics made by domestic companies in Latin America. Since the early 2000s, major Colombian corporations began exporting aggressively to foreign markets. Some of these companies include: Challenger, PcSmart, Compumax, Colcircuirtos, and Kalley. Colombia is the first country in Latin America to manufacture a domestically made 4K television.[66] In 2014, the Colombian Government launched a national campaign to promote IT and Electronic sectors, as well as investing in Colombia's own companies.[65] Although innovation remains low on the global scale, the government sees heavy potential in the high tech industry and is investing heavily in education and innovation centers all across the nation. Because of this, Colombia could become a major global manufacturer of electronics and play an important role in the global high tech industry in the near future. In 2014, the Colombian government released another national campaign to help Colombian companies have a bigger share of the national market.[67]
Construction
Construction recently[when?] has played a vital role in the economy, and is growing rapidly at almost 20% annually. As a result, Colombia is seeing a historic building boom. The Colombian government is investing heavily in transport infrastructure through a plan called "Fourth Generation Network". The target of the Colombian government is to build 7,000km of roads for the 2016–2020 period and reduce travel times by 30% and transport costs by 20%. A toll road concession program will comprise 40 projects, and is part of a larger strategic goal to invest nearly $50bn in transport infrastructure, including: railway systems; making the Magdalena river navigable again; improving port facilities; as well as an expansion of Bogotá's airport.[68] Long-term plans include building a national high-speed train network, to vastly improve competitiveness.
Emeralds are one of the most valuable and exported natural products in the country.
Colombia is well-endowed with minerals and energy resources. It has the largest coal reserves in Latin America, and is second to Brazil in hydroelectric potential. Estimates of petroleum reserves in 1995 were 3.1 billion barrels (490,000,000m3). It also possesses significant amounts of nickel, gold, silver, platinum, and emeralds.
The country was the 12th largest producer of coal in the world in 2018.[69] In 2019, Colombia was the 20th largest petroleum producer in the world, with 791 thousand barrels / day.[70] In mining, Colombia is the world's largest producer of emerald.[71]
The discovery of 2 billion barrels (320,000,000m3) of high-quality oil at the Cusiana and Cupiagua fields, about 200 kilometres (120mi) east of Bogotá, has enabled Colombia to become a net oil exporter since 1986. The Transandino pipeline transports oil from Orito in the Department of Putumayo to the Pacific port of Tumaco in the Department of Nariño.[72] Total crude oil production averages 620 thousand barrels per day (99,000m3/d); about 184 thousand barrels per day (29,300m3/d) is exported. The Pastrana government has significantly liberalized its petroleum investment policies, leading to an increase in exploration activity. Refining capacity cannot satisfy domestic demand, so some refined products, especially gasoline, must be imported. Plans for the construction of a new refinery are under development.
While Colombia has vast hydroelectric potential, a prolonged drought in 1992 forced severe electricity rationing throughout the country until mid-1993. The consequences of the drought on electricity-generating capacity caused the government to commission the construction or upgrading of ten thermoelectric power plants. Half will be coal-fired, and half will be fired by natural gas. The government also has begun awarding bids for the construction of a natural gas pipeline system that will extend from the country's extensive gas fields to its major population centers. Plans call for this project to make natural gas available to millions of Colombian households by the middle of the next decade.
As of 2004, Colombia has become a net energy exporter, exporting electricity to Ecuador and developing connections to Peru, Venezuela and Panama to export to those markets as well. The Trans-Caribbean pipeline connecting western Venezuela to Panama through Colombia is also under construction, thanks to cooperation between presidents Álvaro Uribe of Colombia, Martín Torrijos of Panama and Hugo Chávez of Venezuela. Coal is exported to Turkey.
Oil and coal account for 47% of goods exports in 2021.[73]
Human rights abuses in mining zones
The oil pipelines are a frequent target of extortion and bombing campaigns by the National Liberation Army (ELN) and, more recently, the Revolutionary Armed Forces of Colombia (FARC).[citation needed] The bombings, which have occurred on average once every 5 days, have caused substantial environmental damage, often in fragile rainforests and jungles, as well as causing significant loss of life.[citation needed] In April 1999 in Cartagena de Indias, Clinton's Secretary of Energy Bill Richardson spoke before investors from the United States, Canada and other countries. He expressed his government's willingness to use military aid to support the investment that they and their allies were going to make in Colombia, especially in strategically important sectors like mining and energy.[citation needed]
In 2001 there were 170 attacks on the Caño Limón–Coveñas pipeline. The pipeline was out of operation for over 200 days of that year;[74] the government estimates that these bombings reduced Colombia's GDP by 0.5%.[citation needed] The government of the United States increased military aid, in 2003, to Colombia to assist in the effort to defend the pipeline.[74]Occidental Petroleum privately contracted mercenaries who flew Skymaster planes, from AirScan International Inc.,[75] to patrol the Cano Limon-Covenas pipeline. Many of these operations used helicopters, equipment and weapons provided by the U.S. military and anti-narcotics aid programs.[citation needed]
Mining and natural exploitation has had environmental consequences. The region of Guajira is undergoing an accelerated desertification with the disappearances of forests, land, and water sources, due to the increase in coal production.[76][77] Social consequences or lack of development in resource rich areas is common. 11 million Colombians survive on less than one dollar a day. Over 65% of these live in mining zones. There are 3.5 million children out of school, and the most critical situation is in the mining zone of Choco, Bolivar, and Sucre.[citation needed]
Economic consequences of privatization and liberal institutions have meant changes in taxation to attract foreign investment. Colombia will lose another $800 million over the next 90 years that Glencore International operates in El Cerrejon Zona Media, if the company continues to produce coal at a rate of 5 million tons/year, because of the reduction of the royalty tax from 10 to 15% to .04%.[citation needed] If the company, as is plausible, doubles or triples its production, the losses will be proportionally greater.[citation needed] The operational losses from the three large mining projects (El Cerrejon, La Loma, operated by Drummond, and Montelíbano, which produces ferronickel) for Colombia to more than 12 billion. [citation needed]
Coal production has grown rapidly, from 22.7 million tons in 1994 to 50.0 million tons in 2003.[78] Over 90% of this amount was exported, making Colombia the world's sixth largest coal exporter, behind Australia, China, Indonesia, South Africa and Russia.[79] From the mid-1980s the center of coal production was the Cerrejón mines in the Guajira department.[citation needed] However, the growth in output at La Loma in neighboring Cesar Department made this area the leader in Colombian coal production since 2004.[citation needed] Production in other departments, including Boyacá, Cundinamarca and Norte de Santander, forms about 13% of the total.[citation needed] The coal industry is largely controlled by international mining companies, including a consortium of BHP, Anglo American and Glencore at Cerrejón, and Conundrum Company at La Loma, which is undergoing a lawsuit in the U.S. District Court in Alabama for union assassinations and alleged paramilitary links.[citation needed]
Foreign investment
Various attempts to open up the economy during the 1993-2023 period have been described by Portafolio as being "half-hearted".[80] In 1990, to attract foreign investors and promote trade, an experiment from the International Monetary Fund[81] known as "La Apertura" was adopted by the government, this policy was to modernize different sectors of the economy to increase the overall efficiency of production so as to bring down prices to internationally competitive levels. Although the analyses of the results are not clear,[citation needed] the fact is that the agricultural sector was severely impacted by this policy.[82]
In 1991 and 1992, the government passed laws to stimulate foreign investment in nearly all sectors of the economy. The only activities closed to foreign direct investment are defense and national security, disposal of hazardous wastes, and real estate—the last of these restrictions is intended to hinder money laundering. Colombia established a special entity—Converter—to assist foreigners in making investments in the country. Foreign investment flows for 1999 were $4.4 billion, down from $4.8 billion in 1998.
Major foreign investment projects underway include the $6 billion development of the Cusiana and Cupiagua oil fields, development of coal fields in the north of the country, and the recently concluded licensing for establishment of cellular telephone service. The United States accounted for 26.5% of the total $19.4 billion stock of non-petroleum foreign direct investment in Colombia at the end of 1998.
On 21 October 1995, under the International Emergency Economic Powers Act (IEEPA), President Clinton signed an Executive Order barring U.S. entities from any commercial or financial transactions with four Colombian drug kingpins and with individuals and companies associated with the traffic in narcotics, as designated by the Secretary of the Treasury in consultation with the Secretary of State and the Attorney General. The list of designated individuals and companies is amended periodically and is maintained by the Office of Foreign Asset Control at the Department of the Treasury, tel. (202) 622-0077 (ask for Document #1900). The document also is available at the Department of Treasury website.[83]
Colombia is the United States' fifth-largest export market in Latin America—behind Mexico, Brazil, Venezuela, and Argentina—and the 26th-largest market for U.S. products worldwide. The United States is Colombia's principal trading partner, with two-way trade from November 1999 through November 2000 exceeding $9.5 billion--$3.5 billion U.S. exports and $6.0 billion U.S. imports. Colombia benefits from duty-free entry—for a 10-year period, through 2001—for certain of its exports to the United States under the Andean Trade Preferences Act. Colombia improved protection of intellectual property rights through the adoption of three Andean Pact decisions in 1993 and 1994, but the U.S. remains concerned over deficiencies in licensing, patent regulations, and copyright protection.
The petroleum and natural gas coal mining, chemical, and manufacturing industries attract the greatest U.S. investment interest. U.S. investment accounted for 37.8% ($4.2 billion) of the total $11.2 billion in foreign direct investment at the end of 1997, excluding petroleum and portfolio investment. Worker rights and benefits in the U.S.-dominated sectors are more favorable than general working conditions. Examples include shorter-than-average working hours, higher wages, and compliance with health and safety standards above the national average.
Tertiary industries
The services sector dominates Colombia's GDP, contributing 58 percent of GDP in 2007, and, given worldwide trends, its dominance will probably continue. The sector is characterized by its heterogeneity, being the largest for employment (61 percent), in both the formal and informal sectors.[55]
Arts and music
Since the early 2010s, the Colombian government has shown interest in exporting modern Colombian pop culture to the world (which includes video games, music, movies, TV shows, fashion, cosmetics, and food) as a way of diversifying the economy and changing the image of Colombia. In the Hispanic world, Colombia is only behind Mexico in cultural exports at US$750 million annually, and is already a regional leader in cosmetic and beauty exports.[26]
Travel and tourism
Tourism in Colombia is an important sector in the country's economy.[citation needed] Colombia has major attractions as a tourist destination, such as Cartagena and its historic surroundings, which are on the UNESCO World Heritage List; the insular department of San Andrés, Providencia y Santa Catalina; Santa Marta, Cartagena and the surrounding area. Fairly recently, Bogotá, the nation's capital, has become Colombia's major tourist destination because of its improved museums and entertainment facilities and its major urban renovations, including the rehabilitation of public areas, the development of parks, and the creation of an extensive network of cycling routes. With its very rich and varied geography, which includes the Amazon and Andean regions, the llanos, the Caribbean and Pacific coasts, and the deserts of La Guajira, and its unique biodiversity, Colombia also has major potential for ecotourism.[84]
The direct contribution of Travel & Tourism to GDP in 2013 was COP11,974.3mn (1.7% of GDP). This is forecast to rise by 7.4% to COP12,863.4mn in 2014. This primarily reflects the economic activity generated by industries such as hotels, travel agents, airlines and other passenger transportation services (excluding commuter services). But it also includes, for example, the activities of the restaurant and leisure industries directly supported by tourists.[85] The direct contribution of Travel & Tourism to GDP is expected to grow by 4.1% pa to COP19,208.4mn (1.8% of GDP) by 2024.
The number of tourists in Colombia grows by over 12% every year. Colombia is projected to have over 15 million tourists by 2023.[86][87]
Eco-tourism
Eco-tourism is very promising in Colombia. Colombia has vast coastlines, mountainous areas, and tropical jungles. There are volcanoes and waterfalls as well. This makes Colombia a biodiverse country with many attractions for foreign visitors.
The Colombian coffee growing axis (Spanish: Eje Cafetero), also known as the Coffee Triangle (Spanish: Triángulo del Café), is a part of the Colombian Paisa region in the rural area of Colombia, which is famous for growing and production of a majority of Colombian coffee, considered by some as the best coffee in the world. There are three departments in the area: Caldas, Quindío and Risaralda. These departments are among the smallest departments in Colombia with a total combined area of 13,873km2 (5,356sqmi), about 1.2% of the Colombian territory. The combined population is 2,291,195 (2005 census).[88]
Colombia's geography, with three cordilleras of the Andes running up the country from south to north, and jungle in the Amazon and Darién regions, represents a major obstacle to the development of national road networks with international connections. Thus, the basic nature of the country's transportation infrastructure is not surprising. In the spirit of the 1991 constitution, in 1993 the Ministry of Public Works and Transportation was reorganized and renamed the Ministry of Transportation. In 2000 the new ministry strengthened its role as the planner and regulator within the sector.[89]
Air transportation
Colombia was a pioneer in promoting airlines in an effort to overcome its geographic barriers to transportation. The Colombian Company of Air Navigation, formed in 1919, was the second commercial airline in the world. It was not until the 1940s that Colombia's air transportation began growing significantly in the number of companies, passengers carried, and kilometers covered. In the early 2000s, an average of 72 percent of the passengers transported by air go to national destinations, while 28 percent travel internationally. One notable feature is that after the reforms of the beginning of the 1990s, the number of international passengers tripled by 2003. In 1993 the construction, administration, operation, and maintenance of the main airports transferred to departmental authorities and the private sector, including companies specializing in air transportation. Within this process, in 2006 the International Airport Operator (Opain), a Swiss-Colombian consortium, won the concession to manage and develop Bogotá's El Dorado International Airport. El Dorado is the largest airport in Latin America in terms of cargo traffic (33rd worldwide), with 622,145 metric tons in 2013, second in terms of traffic movements (45th worldwide) and third in terms of passengers (50th among the busiest airports in the world). In addition to El Dorado, Colombia's international airports are Palo Negro in Bucaramanga, Simón Bolívar in Santa Marta, Cortissoz in Barranquilla, Rafael Núñez in Cartagena, José María Córdova in Rionegro near Medellín, Alfonso Bonilla Aragón in Cali, Alfredo Vásquez Cobo in Leticia, Matecaña in Pereira, Gustavo Rojas Pinilla in San Andrés, and Camilo Daza in Cúcuta. In 2006 Colombia was generally reported to have a total of 984 airports, of which 103 had paved runways and 883 were unpaved. The Ministry of Transportation listed 581 airports in 2007, but it may have used a different methodology for counting them.[89]
Poverty and inequality
After a large crisis in 1999, poverty in Colombia has had a decreasing trend. The share of Colombians below the income-based poverty line fell from 50% in 2002 to 28% in 2016. The share of Colombians below the extreme income-based poverty line fell from 18% to 9% in the same period. Multidimensional poverty fell from 30% to 18% between 2010 and 2016.[90][91]
Hypermarkets and big-box stores are losing market participation in Colombian retail.[93]
Debt
Between 1976 and 2006, Colombia's debt doubled every 10 years: in 1976 it was about $3.6 billion, in 1986 it was $7.2 billion, in 1996 it was over $16 billion and in 2006 it was over $36 billion. Since 2006, the growth of the debt has accelerated: it reached $72 billion in 2011 and reached $124 billion in 2017, which means that in less than 10 years Colombia's foreign debt has tripled. About a quarter of Colombia's annual budget, or $20 billion, goes to pay off the public debt.[94]
Corruption
Corruption in public management in Colombia is widespread and structural in nature. This situation generates losses for the country estimated at 15 billion dollars. Colombia has not escaped the scandals involving millions of dollars in bribes from the Brazilian construction company Odebrecht, as well as the Cartagena refinery, a case of embezzlement of public funds that came to light in 2016 and involved members of the governments of Álvaro Uribe (2002–2010) and Juan Manuel Santos (2010–2018).[95]
The economy of Cameroon was one of the most prosperous in Africa for a quarter of a century after independence. The drop in commodity prices for its principal exports – petroleum, cocoa, coffee, and cotton – in the mid-1980s, combined with an overvalued currency and economic mismanagement, led to a decade-long recession. Real per capita GDP fell by more than 60% from 1986 to 1994. The current account and fiscal deficits widened, and foreign debt grew. Yet because of its oil reserves and favorable agricultural conditions, Cameroon still has one of the best-endowed primary commodity economies in sub-Saharan Africa.
The economy of the Central African Republic is $2.321 billion by gross domestic product as of 2019, even lower than much smaller countries such as Barbados with an estimated annual per capita income of just $529 as measured nominally in 2024.
The economy of Chile operates as a market economy and is classified as a high-income economy by the World Bank. It is recognized as one of the most prosperous countries in South America, leading the region in areas such as competitiveness, income per capita, globalization, economic freedom, and low levels of perceived corruption. Despite its prosperity, Chile experiences significant economic inequality, as reflected by its Gini index, though this is close to the regional average. Among Organisation for Economic Co-operation and Development (OECD) countries, Chile has a robust social security system, with social welfare expenditures amounting to approximately 19.6% of GDP.
The economy of Costa Rica has been very stable for some years now, with continuing growth in the GDP and moderate inflation, though with a high unemployment rate: 11.49% in 2019. Costa Rica's economy emerged from recession in 1997 and has shown strong aggregate growth since then. The estimated GDP for 2023 is US$90 billion, up significantly from the US$52.6 billion in 2015 while the estimated 2024 per capita is US$28,558.
The economy of the Dominican Republic is the seventh largest in Latin America, and is the largest in the Caribbean and Central American region. The Dominican Republic is an upper-middle income developing country with important sectors including mining, tourism, manufacturing, energy, real estate, infrastructure, telecommunications and agriculture. The Dominican Republic is on track to achieve its goal of becoming a high-income country by 2030, and is expected to grow 79% in this decade. The country is the site of the single largest gold mine in Latin America, the Pueblo Viejo mine. Although the service sector is currently the leading employer of Dominicans, agriculture remains an important sector in terms of the domestic market and is in second place in terms of export earnings. Tourism accounts for more than $7.4 billion in annual earnings in 2019. Free-trade zone earnings and tourism are the fastest-growing export sectors. A leading growth engine in the Free-trade zone sector is the production of medical equipment for export having a value-added per employee of US$20,000, total revenue of US$1.5 billion, and a growth rate of 7.7% in 2019. The medical instrument export sector represents one of the highest-value added sectors of the country's economy, a true growth engine for the country's emerging market. Remittances are an important sector of the economy, contributing US$8.2 billion in 2020. Most of these funds are used to cover household expenses, such as housing, food, clothing, health care and education. Secondarily, remittances have financed businesses and productive activities. Thirdly, this combined effect has induced investment by the private sector and helps fund the public sector through its value-added tax. The combined import market including the free-trade-zones amounts to a market of $20 billion a year in 2019. The combined export sector had revenues totaling $11 billion in 2019. The consumer market is equivalent to $61 billion in 2019. An important indicator is the average commercial loan interest rate, which directs short-term investment and stimulates long-term investment in the economy. It is currently 8.30%, as of June 2021.
The economy of Ecuador is the eighth largest in Latin America and the 69th largest in the world by total GDP. Ecuador's economy is based on the export of oil, bananas, shrimp, gold, other primary agricultural products and money transfers from Ecuadorian emigrants employed abroad. In 2017, remittances constituted 2.7% of Ecuador's GDP. The total trade amounted to 42% of the Ecuador's GDP in 2017.
The economy of Ethiopia is a mixed and transition economy with a large public sector. The government of Ethiopia is in the process of privatizing many of the state-owned businesses and moving toward a market economy. The banking, telecommunication and transportation sectors of the economy are dominated by government-owned companies.
The economy of Honduras is based mostly on agriculture, which accounts for 14% of its gross domestic product (GDP) in 2013. The country's leading export is coffee (US$340 million), which accounted for 22% of the total Honduran export revenues. Bananas, formerly the country's second-largest export until being virtually wiped out by 1998's Hurricane Mitch, recovered in 2000 to 57% of pre-Mitch levels. Cultivated shrimp is another important export sector. Since the late 1970s, towns in the north began industrial production through maquiladoras, especially in San Pedro Sula and Puerto Cortés.
The economy of Laos is a lower-middle income developing economy. Being a socialist state, the Lao economic model resembles the Chinese socialist market and/or Vietnamese socialist-oriented market economies by combining high degrees of state ownership with openness to foreign direct investment and private ownership in a predominantly market-based framework.
The economy of Nicaragua is focused primarily on the agricultural sector. Nicaragua itself is the least developed country in Central America, and the second least developed in the Americas by nominal GDP, behind only Haiti. In recent years, under the administrations of Daniel Ortega, the Nicaraguan economy has expanded somewhat, following the Great Recession, when the country's economy actually contracted by 1.5%, due to decreased export demand in the American and Central American markets, lower commodity prices for key agricultural exports, and low remittance growth. The economy saw 4.5% growth in 2010 thanks to a recovery in export demand and growth in its tourism industry. Nicaragua's economy continues to post growth, with preliminary indicators showing the Nicaraguan economy growing an additional 5% in 2011. Consumer Price inflation have also curtailed since 2008, when Nicaragua's inflation rate hovered at 19.82%. In 2009 and 2010, the country posted lower inflation rates, 3.68% and 5.45%, respectively. Remittances are a major source of income, equivalent to 15% of the country's GDP, which originate primarily from Costa Rica, the United States, and European Union member states. Approximately one million Nicaraguans contribute to the remittance sector of the economy.
The economy of Paraguay is a market economy that is highly dependent on agriculture products. In recent years, Paraguay's economy has grown as a result of increased agricultural exports, especially soybeans. Paraguay has the economic advantages of a young population and vast hydroelectric power. Its disadvantages include the few available mineral resources, and political instability. The government welcomes foreign investment.
The economy of Peru is an emerging, mixed economy characterized by a high level of foreign trade and an upper middle income economy as classified by the World Bank. Peru has the forty-seventh largest economy in the world by total GDP and currently experiences a high human development index. The country was one of the world's fastest-growing economies in 2012, with a GDP growth rate of 6.3%. The economy was expected to increase 9.3% in 2021, in a rebound from the COVID-19 pandemic in Peru. Peru has signed a number of free trade agreements with its main trade partners. China became the nation's largest trading partner following the China–Peru Free Trade Agreement signed on 28 April 2009. Additional free trade agreements have been signed with the United States in 2006, Japan in 2011 and the European Union in 2012. Trade and industry are centralized in Lima while agricultural exports have led to regional development within the nation.
The economy of Tanzania is a lower-middle income economy that is centered around Manufacturing, Tourism, Agriculture, and financial services. Tanzania's economy has been transitioning from a planned economy to a market economy since 1985. Although total GDP has increased since these reforms began, GDP per capita dropped sharply at first, and only exceeded the pre-transition figure in around 2007.
The economy of Venezuela is based primarily on petroleum, as the country holds the largest crude oil supply in the world. Venezuela was historically among the wealthiest economies in South America, particularly from the 1950s to 1980s. During the 21st century, under the leadership of socialist populist Hugo Chávez and his successor Nicolás Maduro, the Venezuelan economy has collapsed, prompting millions of citizens to flee Venezuela. GDP has fallen by 80 percent in less than a decade. The economy is characterized by corruption, good shortages, unemployment, mismanagement of the oil sector, and since 2014, hyperinflation.
The economy of Tunisia is in the process of being liberalized after decades of heavy state direction and participation in the country's economy. Prudent economic and fiscal planning has resulted in moderate but sustained growth for over a decade. Tunisia's economic growth historically has depended on oil, phosphates, agri-food products, car parts manufacturing, and tourism. In the World Economic Forum Global Competitiveness Report for 2015–2016, Tunisia ranks in 92nd place.
The economy of Bolivia is the 95th-largest in the world in nominal terms and the 87th-largest in purchasing power parity. Bolivia is classified by the World Bank to be a lower middle income country. With a Human Development Index of 0.703, it is ranked 114th. Driven largely by its natural resources, Bolivia has become a region leader in measures of economic growth, fiscal stability and foreign reserves, although it remains a historically poor country. The Bolivian economy has had a historic single-commodity focus. From silver to tin to coca, Bolivia has enjoyed only occasional periods of economic diversification. Political instability and difficult topography have constrained efforts to modernize the agricultural sector. Similarly, relatively low population growth coupled with low life expectancy has kept the labor supply in flux and prevented industries from flourishing. Rampant inflation and corruption previously created development challenges, but in the early twenty-first century the fundamentals of its economy showed unexpected improvement, leading Moody's Investors Service to upgrade Bolivia's economic rating in 2010 from B2 to B1. The mining industry, especially the extraction of natural gas and zinc, currently dominates Bolivia's export economy.
The economy of Ivory Coast is stable and currently growing, in the aftermath of political instability in recent decades. The Ivory Coast's economy is largely market-based and depends heavily on the agricultural sector. Almost 70% of the Ivorian people are engaged in some form of agricultural activity. The economy grew 82% in the 1960s, reaching a peak growth of 360% in the 1970s, but this proved unsustainable and it shrank by 28% in the 1980s and a further 22% in the 1990s. This decline, coupled with high population growth, resulted in a steady fall in living standards. The gross national product per capita, now rising again, was about US$727 in 1996. It was substantially higher two decades before. Real GDP growth is expected to average 6.5% in 2024–25.
The economy of Algeria deals with Algeria's current and structural economic situation. Since independence in 1962, Algeria has launched major economic projects to build up a dense industrial base. However, despite these major achievements, the Algerian economy has gone through various stages of turbulence.
The economy of Argentina is the second-largest national economy in South America, behind Brazil. Argentina is a developing country with a highly literate population, an export-oriented agricultural sector, and a diversified industrial base.
Colombia is now a country mostly in South America, and has been home to many indigenous peoples and cultures since at least 12,000 BCE.
1 2 Roberto Steiner and Hernán Vallejo. "The Economy". In Colombia: A Country Study (Rex A. Hudson, ed.). Library of Congress Federal Research Division (2010).
↑ Posada-Carbo, Eduardo (1998). Colombia: The Politics of Reforming the State. New York, New York: St. Martin's Press. pp.194–195. ISBN978-0-312-17618-1.
↑ Roberto Steiner and Hernán Vallejo. "Tourism". In Colombia: A Country Study (Rex A. Hudson, ed.). Library of Congress Federal Research Division (2010)
1 2 Roberto Steiner and Hernán Vallejo (2010). Rex A. Hudson (ed.). "Colombia: A Country Study"(PDF). Library of Congress Federal Research Division. pp.181–4. Archived(PDF) from the original on 5 June 2011.
↑ data cover general government debt, and includes debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities
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52,400,145 (2023) [3] 
51.7 high (2018) [10] 
49.4% of GDP (2017 est.) [6] [note 1] 
