Colombia has a strong economy making it a great region to invest

Colombia presents a compelling landscape for investment, supported by several key statistics and factors:

Strong Economic Growth and Recovery:

• Colombia’s economy experienced a robust growth of 7.5% in 2022, ranking among the highest within the OECD countries. While growth moderated to 0.6% in 2023 due to decreased investment and other factors, projections indicate a recovery to 2.4% in 2025 and a potential growth rate of 2.9% by 2027.
• International trade reached USD 115 billion in 2022, marking a 13% increase and demonstrating a strong economic rebound post-COVID-19.

Significant Foreign Direct Investment (FDI):

• FDI in Colombia hit a record high of USD 17 billion in 2022, an 81.7% increase from 2021. This figure positioned Colombia as the fourth-largest recipient of FDI in Latin America in 2021.
• In 2023, FDI reached USD 17.4 billion, a 24.7% increase since 2019, highlighting sustained investor confidence.
• While FDI saw a 28% decline in the first half of 2024, it’s important to note the significant increase in previous years, and financial and business services are becoming increasingly important sectors for FDI.

Attractive Business Environment:

• Colombia has implemented economic liberalization reforms since the early 1990s, establishing a pro-FDI framework that includes national treatment for foreign investors and the lifting of controls on profit and capital remittance.
• The government actively encourages FDI and offers incentives such as income tax exemptions and deductions in priority sectors like tourism, agriculture, and science and technology.
• Bogotá is recognized as a competitive city for business in Latin America, ranking among the top cities for attracting FDI.

Key Investment Sectors:

• Tourism: Colombia has seen a 35% growth in international arrivals since 2019, reaching a historic record in 2023. The country is the second most biodiverse globally and boasts 17 UNESCO cultural heritage sites, making it attractive for nature and cultural tourism.
• Infrastructure: Investments are being made to improve connectivity, including airport projects, roads, railways, and metro lines.
• Renewable Energy: Colombia is the third most attractive emerging market in Latin America for renewable energy investment.
• Other priority sectors include agribusiness and food production, manufacturing, IT and creative industries, and healthcare.

Stable Macroeconomic Indicators:

• Colombia has maintained macroeconomic stability through strong institutions, including inflation targeting, exchange rate flexibility, and fiscal rules.

Access to Markets:

• The country has multiple trade agreements and access to global markets.

Government Support:

• The government, through ProColombia, actively promotes the country as an investment destination, focusing on sustainable development, reindustrialization, and social and economic justice.

Rental Yields:

• The average gross rental yield in Colombia is around 7%, with cities like Medellín showing attractive yields in the real estate market.

The statistics indicate that Colombia offers significant opportunities for investors looking for growth, diversification, and attractive returns in a dynamic Latin American market. The government’s ongoing efforts to improve the business climate and focus on key sectors further enhance its appeal as an investment destination.