ColombiaLand of Opportunities Ministry of Foreign Affairs
ColombiaWith coastlines on both the Pacific and Atlantic oceans, Colombia is an important platform for the region
46,827,383
Main Cities
Source: Governmet of Colombia
Colombiaon the road to the OECD
Source: OECD Colombia – Economic Assessment, September 2010
Source: Rating Agencies, Proexport Colombia
Colombia recovered the investment grade status
in 2011
Source: Top Reformers Report, World Bank
Business Climate
• Colombia ranks 4th in the ease of doing business in Latin America.
• Colombia ranks 1st in protecting investors in Latin America and 6th in the world.
17,709
11,87510,792
9,162
3,830
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
Russia Brazil Colombia China IndiaSource: World Economic Outlook (International Monetary Fund)
EconomyColombia Vs. BRIC: GDP per capita PPP – 2012 (current international USD)
CIVETS+, an opportunity for diversification
HSBC CEO Michael Geoghegan: "Each has a very bright future“; "Each has large, young, growing population. Each has
a diverse and dynamic economy.”
“The CIVETS economies are emerging as attractive destinations for investors and
they will report an increase in Gross Domestic Product (GDP) of 4.5% in the
next 20 years. Even above the estimates growth for the G7 countries, that would be
1.8%”
May 24th, 2010
Colombia, Indonesia, Vietnam, Egypt, Turkey, South Africa will take over as the new BRICs (Brazil, Russia,
India and China).+ are Azerbaijan and Kazakhstan
4.0
0.9-0.6
3.0
-6
-4
-2
0
2
4
6
8
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Colombia Germany
Euro area Latin America and the Caribbean
Source: IMF
GDP (YoY, %)
Colombia has grown at an average of 4.7% during the
past decade, despite the international financial crisis.
Colombia has achieved an inclusive development during the past decade
5048 47
4542
4037
34
1816 15 14 16
14 12 1110
15
20
25
30
35
40
45
50
2002 2003 2004 2005 2008 2009 2010 2011
Poverty (%) Extreme poverty (%)
Incidence of Poverty and Extreme Poverty (%)
8
9
10
11
12
13
14
15
16
17
18
Aug
01Fe
b 02
Aug
02Fe
b 03
Aug
03Fe
b 04
Aug
04Fe
b 05
Aug
05Fe
b 06
Aug
06Fe
b 07
Aug
07Fe
b 08
Aug
08Fe
b 09
Aug
09Fe
b 10
Aug
10Fe
b 11
Aug
11Fe
b 12
Aug
12Fe
b 13
Unemployment Rate (%)
Source: DANE
Five Engines of Economic Growth
Infrastructure
Innovation Housing Agriculture Mining and Energy
Increase the railway system from 906 to 2,000 km, highways from 1,050 to 2,000 km, and the number of bridges on the primary road network from 1 to 27.
Maximize the potential of Colombia‘s human capital and align the productive and academic sectors.
Build 1 million houses during this four-year term.
Increase agricultural production by 33.9% between 2014 and 2019.
One of the strongest growth sectors over the past decade.
Source: Ministry of Foreign Affairs
Financial services
19%Social
services15%
Industry12%
Commerce11%
Mining11%
Construction8%
Agriculture6%
Transport6%
Utilities3%
Taxes9%
61%
17%23%
18% 19%
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
HouseholdConsumption
GovernmentSpending
PrivateInvestment
Exports Imports
Composition of the Economy by Supply and Demand
Source: DANE
According to World Energy Council data, Colombia has the highest energy stability of the group of countries with a GNP per capita between USD$6.000 and USD$14.000.
Energy
Colombia has a high capacity for exporting energy.
Hidraulic80%
Cogenerator1%
Thermal13%
Other6%
Source: XM
Distribution of power generation in Germany (% of GDP)
Fiscal Policy
Source: Ministry of Finance, Central Bank
36
42
48 4743 42
3936 36 37 38
35 33
05
101520253035404550
Internal public debt External public debt
-5.0-5.5 -5.7
-4.7 -4.9
-4.3
-3.7
-3.0-2.6
-4.3-3.9
-2.9-2.3 -2.2 -2.1
-6
-5
-4
-3
-2
-1
0
Gross Public Debt (% of GDP)
Fiscal Balance(% of GDP)
*: forecasts.
Monetary Policy
Source: Central Bank
(%)
1.91
2.78
3.25
2.50
3.50
4.50
5.50
6.50
7.50
8.50
9.50
10.50
1
2
3
4
5
6
7
8
Jan
07
Mai
07
Sep
07
Jan
08
Mai
08
Sep
08
Jan
09
Mai
09
Sep
09
Jan
10
Mai
10
Sep
10
Jan
11
Mai
11
Sep
11
Jan
12
Mai
12
Sep
12
Jan
13Inflation Core inflation Policy Interest Rate (right axis)
Source: destatis
International Trade
60,20855,207
5,001
0
10000
20000
30000
40000
50000
60000
70000
Exports Imports Trade balance
Colombia‘s Trade Balance (USD Million FOB)
Source: DANE
1,385
1,644
-259-500
0
500
1000
1500
2000
Exports Imports Trade balance
Colombia‘s Trade Balance with Germany (EUR Million)
Free Trade Agreements (FTAs)
Reasons to Invest in ColombiaTax benefits
Colombia has some of the most competitive Free Trade Zones of Latin America, with incentives such as:• Income tax of 15%.• No cause or custom taxes (VAT, tariffs).• The benefits of international trade agreements and the
possibility of local market share.
A government committed to R+D+i: • Wage and training incentives and tax deduction of up to
175% of the investment for companies performing R & D projects.
• Revenue generated from innovative projects generate tax deductions and equipment imported for these activities is exempt from VAT.
Colombia has always had a close business relationship with Germany
Pacific AllianceChile-Colombia-Mexico-Peru
“Pacific Alliance is the most important integration process in Latin America”
Juan Manuel Santos, Jun 6th 2012
• Population - over 200 million
• Together, the countries of the Pacific Alliance would be the 9th largest economy in the world
• 35% of Latin America’s total GDP: 1.7 billon dollars
• Accounts for half of all foreign trade in the region: US$438 billion in exports and US$418 billion in imports
• Exports are almost 60% larger than Mercosur countries
• US$55 billion in FDI
• US$71 billion in exports to Asia
• MILA: integration of stock-markets
Colombia Full of wonders and
diversity