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Colombia: A land of opportunities Private sector outlook

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Presentation on theme: "Colombia: A land of opportunities Private sector outlook"— Presentation transcript:

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

2 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

3 Colombia: A middle income economy
2015 2010 2016 2005 99.899 2000 GDP – Million US$

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

5 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

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

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

9 Population Distribution 2010 - 2020 Increase in middle class

10 2017: An uncertain and difficult year However Colombia maintains positive growth rates and a promising outlook

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13 2017 Sem I Civil -7% Housing 5%

14 Colombia: an open economy

15 GLOBAL STRATEGY Comunidad Andina de Naciones - CAN 1999 MERCOSUR 2006 Chile 2009 Triángulo del Norte (Guatemala – El Salvador - Honduras) 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

16 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

17 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

18 Investment: one of the drivers of Colombian economy

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21 Favourable macroeconomic environment

22 Inflation is within the Central Bank´s target

23 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

24 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

25 What can we expect in 2020?

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

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

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29 Infrastructure-GDP growth
13,2% 2014 8,4% 5% 5,7% 2,4% 2015 2016 2017 Sem I 2014 4th Generation Roads Program: $17 US billon over 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

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34 Growth Accelerators Education Innovation Entrepreneurship

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