47790000
Spanish (official)
BOGOTA (capital) 9.765 million; Medellin 3.911 million; Cali 2.646 million; Barranquilla 1.991 million; Bucaramanga 1.215 million; Cartagena 1.092 million (2015)
- Conventional long form
- Republic of Colombia
- Conventional short form
- Colombia
- Local long form
- Republica de Colombia
- Local short form
- Colombia
presidential republic
- Name
- Bogota
- Geographic coordinates
- 4 36 N, 74 05 W
- Time difference
- UTC-5 (same time as Washington, DC, during Standard Time)
has not submitted an ICJ jurisdiction declaration; accepts ICCt jurisdiction
Colombia’s economy benefits from free trade and sound fiscal policies but it has slowed in 2016 because of falling global oil prices, a strong dollar, and moderate inflation. Colombia heavily depends on energy and mining exports, making it vulnerable to a drop in commodity prices. Colombia is the world's fourth largest coal exporter, the world’s second largest coffee and cut flowers exporter, and Latin America’s fourth largest oil producer. Economic development is hampered by inadequate infrastructure, poverty, narcotrafficking, and an uncertain security situation.
- Inflation
- 7.517%
- External debt stocks
- US$ 111,049,740,000
- Total tax rate (% of commercial profits)
- 69.8%
- Real Interest Rate
- 8.307%
- Manufacturing, value added (% of GDP)
- 12.577%
- Current Account Balance
- US$ -12,541,083,843
- Labor Force, Total
- 25,402,280
- Employment in Agriculture
- 15.81%
- Employment in Industry
- 19.61%
- Employment in Services
- 64.56%
- Unemployment Rate
- 9.87%
- Imports of goods and services
- US$ 58,310,708,444
- Exports of goods and services
- US$ 39,657,882,657
- Total Merchandise Trade
- 26.88%
- FDI, net inflows
- US$ 13,592,646,939
- Commercial Service Exports
- US$ 7,700,532,291
coffee, cut flowers, bananas, rice, tobacco, corn, sugarcane, cocoa beans, oilseed, vegetables; shrimp; forest products
textiles, food processing, oil, clothing and footwear, beverages, chemicals, cement; gold, coal, emeralds
- Commodities
- petroleum, coal, emeralds, coffee, nickel, cut flowers, bananas, apparel
- Partners
- US 27.5%, Panama 7.2%, China 5.2%, Spain 4.4%, Ecuador 4% (2015)
- Commodities
- industrial equipment, transportation equipment, consumer goods, chemicals, paper products, fuels, electricity
- Partners
- US 28.8%, China 18.6%, Mexico 7.1%, Germany 4.2% (2015)
- Country Risk Rating
- A4
- A somewhat shaky political and economic outlook and a relatively volatile business environment can affect corporate payment behavior. Corporate default probability is still acceptable on average.
- Business Climate Rating
- A4
- The business environment is acceptable. Corporate financial information is sometimes neither readily available nor sufficiently reliable. Debt collection is not always efficient and the institutional framework has shortcomings. Intercompany transactions may thus run into appreciable difficulties in the acceptable but occasionally unstable environments rated A4.
- Two coastlines
- Large population (almost 50 million)
- Abundant natural resources (agriculture, minerals)
- Considerable tourism potential
- Cautious economic policy
- Institutional stability
- Sound banking system
- Sensitivity to commodity prices and U.S. economic cycle
- Road and port infrastructure shortcomings
- Problematic security situation linked to drug trafficking
- Educational and healthcare shortcomings
- Large informal sector (60% of jobs)
- Lack of skilled labor and low productivity
- Legislative, judicial, and administrative delays
- Structural unemployment, poverty, and inequalities
In 2016 economic activity was hit by weak commodity prices, particularly those of oil, and by the downturn in household consumption due to the increase in inflation and the rise in unemployment. In 2017, the country's economic performance is expected to improve somewhat, driven by the rise, though modest, in oil prices. This is because Colombia's external trade is very dependent on hydrocarbons (almost 50% of the country's exports) and to a lesser extent on mining and agriculture. Public investment spending is likely to be limited in order to offset the weak rise in income, but the government is expected to continue its program of infrastructure improvement through private/public partnerships (PPP). Private investment, mainly directed towards the energy sector, is expected to remain sluggish. The expected decision on second round of PPP projects could, however stimulate investment. Private consumption is expected to pick up a little thanks to a recovery in household purchasing power linked to lower inflation resulting from the dissipation of the effects of the El Nino weather phenomenon, which pushed prices up sharply in 2016. However, private consumption will remain constrained by weak consumer credit growth due to high interest rates. The central bank, determined to dampen the pressure on prices, is likely to cut its rate only gradually.
In 2016 the fiscal balance continued to widen, hit by the drop in revenues resulting from weak oil prices, despite cuts to spending, particularly on investment. In 2017, the public deficit is, however, expected to improve on the back of the expected rise in non-oil income. The government is committed to conducting a fiscal consolidation policy which is primarily aimed at maintaining the country's sovereign debt rating. It is, therefore, relying on the effective implementation of its tax reforms intended to bring in additional revenues estimated at 1% of GDP from 2017. These include, namely: raising VAT from 16% to 19% on some products and services, broadening the tax base by lowering the tax threshold, which will bring almost 440,000 new taxpayers into the system, and gradually cutting corporation tax in a bid to attract new start-ups and stimulate activity by existing businesses. The government's plans also include a provision to create a new tax on fuel, tobacco and sugary fizzy drinks.
The current account deficit is expected to reduce gradually thanks to lower imports due to weak internal demand and the increase, though modest in oil prices. Energy imports (oil derivatives) are projected to decline with the end of expansion work at the country's largest refinery. Imports of consumer goods are expected to remain sluggish, hit by the peso's weakness against the dollar. Energy exports, on the other hand, are likely to benefit from the increase, though modest in oil prices, while the weakness of the peso will sustain non-traditional exports. Profit transfers by foreign companies are likely to be smaller than in previous years and also to contribute to the decline in the current account deficit. The balance of services deficit, meanwhile, is set to remain relatively stable; the rejection of the FARC peace deal is not expected to lead to deterioration in the country's security situation which would impact tourism revenues.
Awarded the Nobel Peace Prize for his efforts to end the conflict with The Revolutionary Armed Forces of Colombia (FARC), President Santos is in a precarious position after voters rejected the FARC peace deal in the referendum held in October 2016. A new agreement was, however, signed in November and will be subject only to the approval of the Congress. Despite various amendments made to the first version of the deal, the opposition, led by former president Uribe, is expected to continue to push for a "No" to the deal considered to be unsatisfactory, particularly regarding punishment of the rebels. An end to the conflict would, however, be a huge step forward for Colombia. The Colombian authorities estimate that an improvement in the security environment could have a positive impact on the economy of between 1 and 2% of GDP, thanks to a stronger institutional framework and increased investment. In the meantime, the unpopular nature of the fiscal reforms (higher taxes and duties) is expected to continue to affect the Santos government's popularity. Drug trafficking, the presence of armed criminal gangs and crime levels will continue to affect the business climate.