NS4540 Winter Term 2016 Colombia Economy Europa brazil economy

Colombia WEF I

Colombia WEF II

Colombia WEF III

Colombia: Governance

Colombia: Economic Freedom I

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Colombia/Venezuela Economic Freedom

Colombia/Ecuador Economic Freedom

Economic Overview

Recent Developments I 2015 drop in oil prices and slow-down in private consumption slowed growth to 2.8% down form 4.9% in 2013 and 4.5% in 2014 Country’s economic performance closely tied to hydrocarbon exports and to a lesser extent mining and agricultural activity In 2016 activity expected to suffer again from long-term drop in commodity and oil prices Hydrocarbons represent 50% of country’s exports Long-term drop in price of hydrocarbons which generate one third of state revenues likely to curtail public investment

Recent Developments II Peace deal with the FARC has several aspects Ceasefire and disarmament of the FARC FARC’s participation in political life Implementation of a new rural development policy (land reform) The fight against drug trafficking and Recognition of the rights of victims If peace deal is signed in March 2016

Economic Impact of Peace Government feels improvement in security climate could have a positive impact on the economy somewhere between 1 and 2% of GDP Report by National Planning Department estimated a peace accord with the FARC could triple foreign direct investment and boost Colombia’s potential economic growth from 4% to 5.9% Would also boost consumer confidence and domestic consumption With increased consumer confidence would increase domestic consumption, foreign investment would improve the countries industries to become more competitive on the global market Annual foreign direct investment could increase to $36