Colombia
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Capital
Bogotá, D.C.
Largest city
Bogotá, D.C.
Administrative divisions
32 departments
Currency
Peso (COP)
Area
1,141,748 km2
Population
47,072,915 (2012)
Calling code
+57
Official language
Spanish
Latest Business Opportunities
See more opportunities for Colombia.
Ease of trading across borders
Importing a standard container of goods into Colombia requires:
Introduction
Colombia's consistently sound economic policies and aggressive promotion of free trade agreements in recent years has helped GDP grow more than 4% per year for the past three years. Colombia depends heavily on oil exports, making it vulnerable to a drop in oil prices. Principal trading partners are the United States, the European Union, Venezuela and China. Columbia has signed or is negotiating FTAs with a number of other countries, including Canada, Chile, Mexico, Switzerland, the EU, Venezuela, South Korea, Turkey, Japan, and Israel. Although Colombia still faces challenges, including infrastructure deficiencies and income inequality, the country of 46 million boasts a growing economy with investment grade status and a rising middle class.
Economic snapshot (% annual growth rate)
| 2011 | 2012 | 2013-16 | |
|---|---|---|---|
| GDP | 6.6 | 4.0 | 3.9 |
| Export of goods and services | 12.9 | 5.3 | 3.1 |
| Import of goods and services | 21.2 | 8.0 | 4.3 |
| Inflation | 3.4 | 3.2 | 3.0 |
| Short-term interest rates (%) | - | - | - |
| Exchange rate (per £) | - | - | - |
| Population | 1.3 | 1.3 | 1.2 |
| Unit labour cost | - | - | - |
| Source: Oxford Economics | - |
Economic outlook
Colombia’s economy picked up speed from Q1; with the central bank recently estimating growth was around 3.4% in Q2, based on rising output of oil, minerals and coffee. Consumer confidence and retail sales also improved in the period. The economy was affected by falling oil prices in the first half of the year, but will be supported by an increase in government spending. Steady progress is expected for the rest of the year with growth of 3.2% forecasted for this year and 4% in 2014.
Trade outlook
Colombian exports have grown rapidly in recent years, boosted by a combination of more external markets and significant increases in the sales of raw materials such as oil and coal. Furthermore, measures taken by Colombia in foreign trade, through free-trade agreements concluded in the past and being negotiated now, are steps in the right direction. Latin America and the Caribbean are prominent trade partners, with the US, Spain and Portugal also featuring highly.
SWOT analysis
| Strengths Sound financial policies Oil exports |
Weaknesses Vulnerability to international commodity prices Unemployment |
| Opportunities Free trade agreements |
Threats Poor infrastructure |
Colombia's trade with the UK
Sector segmentation growth
Sectors to watch:
- Utilities
- Food
- coke & refined petroleum products
Manufacturing
- casting, medical & surgical equipment
- ships, rolling stock
Fastest-growing exporters into Colombia
| Rank | 2012 |
|---|---|
| 1 | Bahamas |
| 2 | Chile |
| 3 | US |
| 4 | Spain |
| 5 | Brazil |
| 6 | Netherlands |
| 7 | Portugal |
| 8 | Argentina |
| 9 | Malaysia |
| 10 | Turkey |
Total merchandise trade - Leading import partners
Opportunities for UK businesses
Given Colombia’s expanding energy sector and a number of major infrastructure projects coming on line, many opportunities exist for UK businesses. Colombia has more than doubled its spending on transportation infrastructure from $1.6 billion in 2010 to $3.3 billion in 2012, and aims to reach three percent of GDP, or approximately $10 billion, by 2014. A broader infrastructure development program over the next several years will create enormous opportunities for companies involved in the construction highways, ports, and airports.
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