Colombia: A land of opportunities Private sector outlook National Business Association of Colombia October 2017

Colombia is not the same country we had 15 years, 10 years or even 5 years ago or the one we will have 5 years from now

Colombia: A middle income economy 291.032 2015 287.121 2010 282.527 2016 146.570 2005 99.899 2000 GDP – Million US$

COLOMBIA: GDP PER CAPITA 6.309 2010 6.030 2015 5.796 2016 3.417 2005 2.479 2000 (US$)

2017: GDP GROWTH Source: IMF Oct 2017   Canadá: 3% UE: 2,1% (0.1 más) EU: 2,2% Japón: 1,5% Corea: 3% México: 2,1% China: 6,8% Venezuela: -12% (0.3 menos) Colombia: 1,7% Ecuador: 0.2% Perú: 2,7% Brasil: 0,7% Chile: 1,4% Argentina: 2,5% (0.2 más) (0.1 más) Latin America: 1,2% World Economy: 3,6% Source: IMF Oct 2017

Colombia grows at a faster rate than Latin American and the World

In Colombia poverty is decreasing and middle class is increasing Source: GPP – DPS and World Bank.

Population Distribution 2010 - 2020 Increase in middle class

2017: An uncertain and difficult year However Colombia maintains positive growth rates and a promising outlook

2017 Sem I Civil -7% Housing 5%

Colombia: an open economy

GLOBAL STRATEGY Comunidad Andina de Naciones - CAN 1999 MERCOSUR 2006 Chile 2009 Triángulo del Norte (Guatemala – El Salvador - Honduras) 2009 - 2010 EFTA (Suiza, Liechtenstein, Noruega e Islandia) 2011 Panamá (Alcance parcial) 2012 Korea Japan (Not implemented yet) 2016 Venezuela (alcance parcial) 2015 Alianza del Pacífico Estados Unidos 2015 – Now in process Unión Europea 2013 Canadá Ingreso de Colombia a la OMC 1981 2001 Cuba CARICOM 1998 México 1995

COLOMBIA: FOREIGN TRADE Following downfall in commodities, exports once again show positive growth rates Exports January-August 2017 55,6% 24,3% 13,0% 14,2% Oil Coffee Industrial Coal

COLOMBIA: FOREIGN TRADE Imports of capital goods also increase Imports January - July 2017 2,0% 2.8% 10,4% 2,7% Capital goods for manufacturing Consumption Goods Intermediate Goods Capital Goods

Investment: one of the drivers of Colombian economy

Favourable macroeconomic environment

Inflation is within the Central Bank´s target

INTEREST RATES 7.75 7.50 % July 2016 Dic 2016 7.50 7.25 7.0 June 2016 Feb 2017 March 2017 7.25 6.5 May 2016 April 2017 6.5 6.25 March 2016 May 2017 5.75 31 julio 5.75 June 2017 Dic 2015 5.5 4.5 July 2017 Sept 2014 3.75 5,25 June 2014

Summarizing: Colombia’s advantages for the private sector include: Strategical location Macroeconomic stability Sustainable economic growth Open economy Open and straightforward investment legislation Political Stability Confidence

What can we expect in 2020?

Colombia in 2020 GDP US$500.000 millones GDP per cápita US$10.000 Poverty rate 20%

Colombia, a country of opportunities Green growth Agribusiness Colombia, a country of opportunities Encadenamientos e infraestructura FALTA Value Chains Infrastructure and Logistics Digital Economy

Infrastructure-GDP growth 13,2% 2014 8,4% 2000-2015 5% 5,7% 2,4% 2015 2016 2017 Sem I 2014 4th Generation Roads Program: $17 US billon over 2015-2020. So far: 30 road projects awarded for $12.2 US billon. 5 the highway-coredors are currently being build up. Many Infrastructure projects are part of the Presidency Program that watch over strategic country projects to help to implement them smoothly. (PINE´s) This 4G projects are part of a 15 year “Transport Multi-modal Plan” to 2032

Growth Accelerators Education Innovation Entrepreneurship