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Invest in Colombia?

Wednesday, June 29, 2016

Several key indicators make colombian investment look good, including a cheap currency, robust economic growth, and the possible end of a half-century old civil war.

A cease-fire agreed to last week between the government and the country’s biggest rebel group could fail, if guerilla fighters fear reprisals, as a result of surrendering their arms to United Nations monitors.

On the other hand, the peace process between the government of Juan Manual Santos and the Revolutionary Armed Forces of Colombia has been moving forward for three years, including issues such as the reintegration of rebels into society, and new sources of revenue, which would replace cocaine trafficking and other illicit activities.

As far as growth is concerned, the value of national production rose 7% and 6% in 2014 and 2015, respectively, while the cost of investment has gone down for holders of strong currencies.

The Colombian peso during last year has been trading in the range of 3,000 per $US, compared to 1,800 two years ago, a drop of 67%.

More than half of Colombia’s exports are products of the extraction sector, especially oil and gas, whose prices fell significantly in 2014.