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| | Information About Colombia; Colombian Economy
| | | | | | Information about Colombia economy; Colombia was Latin America’s strongest and most stable economy during the 20th century. It did not experience a year of negative growth for over 70 years, between the 1930s and the late 1990s. Moreover, it has never experienced hyperinflation and has never defaulted on its international debts or financial obligations.
| | STRONG AND STABLE ECONOMY | Colombia was Latin America’s strongest and most stable economy during the 20th century. It did not experience a year of negative growth for over 70 years, between the 1930s and the late 1990s. Moreover, it has never experienced hyperinflation and has never defaulted on its international debts or financial obligations.
| Key economic indicators:
Colombia is the fifth largest economy in Latin America, following Brazil, Mexico, Argentina and Venezuela, with a Gross Domestic Product of $81.2 billion (2001) and a per capita income of $1,917 (2001).
Current Account Balance: $-1.116 billion (Q3 2002, Banco República)
Exports: $11.9 billion (Jan. - Dec. 2002, DANE, DIAN)
Imports: $11.637 billion (Jan - Nov. 2002, DANE, DIAN)
International Reserves: $10.841 billion (Dec. 2002, Banco República)
Total External Debt: $37.7 billion (Sep. 2002, Banco República)
Exchange Rate: P2,865 = US$1 (Dec 2002, Banco República)
Real annual growth rate by sector (2001)
Agriculture, forestry and fishing -.10%
Mining and quarrying -2.23%
Manufacturing -.76%
Construction 3.17%
Commerce 1.88%
Electricity, gas, water 1.86%
Transportation, communication 3.36%
Government and social services 1.45%
Financial and real estate services 0.24%
Total GDP (annual growth rate) 1.4%
The Uribe Government’s economic and fiscal adjustment program:
• Colombia’s economy has proven to be highly resilient. During Latin America’s so-called "lost decade" of the 1980s, Colombia maintained economic growth and avoided hyperinflation. In the early 1990s, when it liberalized its trade and investment regimes, Colombian companies and workers adapted quickly to new competitive challenges. While an increase in narco terrorism violence in recent years has negatively impacted the Colombian economy, it has neither crippled its entrepreneurial spirit nor isolated the country from world markets, capital or foreign investment.
• The overriding objective of President Uribe’s economic program is to bring about a sustained recovery of economic growth and generate new, private sector employment for thousands of Colombians through highly integrated fiscal, monetary, exchange rate, trade and investment policies. The economic strategy is designed to maintain stability and enhance international confidence in the Colombian market.
• The Government projects real economic growth of between 2.0% and 2.5% and inflation in the range of 5-6% in 2003.
• Strengthening the Central Government’s finances is a core element of the program. The goal is to reduce the combined public sector deficit from 4% of GDP in 2002 to 2.5% of GDP in 2003, and then continue the consolidation process in subsequent years.
• In its first few weeks in office, the Uribe Government launched many of the fundamental elements of its economic strategy. These include:
NEW TAX MEASURES: To provide immediate financial resources to help the State defeat terrorism and narco-trafficking, the Uribe government implemented a one-time tax on high-income individuals and corporations. This tax raised $800 million that will be used to strengthen the Colombian Armed Forces and National Police so they can provide improved law and order throughout the country. In December, the Congress approved a tax package that expands the value added tax (VAT) base and phase out exemptions to the income tax.
These measures will raise revenues, reduce tax evasion through new enforcement measures and stricter penalties and close tax loopholes.
FREEZE PUBLIC SPENDING: To reduce the fiscal deficit, the Government proposed to freeze a large part of current primary spending for the next two years at the 2002 level. This measure will be voted in a nationwide referendum in early 2003.
PENSION REFORM: Congress approved pension reform that will better balance benefits with contributions. This reform will generate significant fiscal savings over the long-term.
RESTRUCTURE AND DOWNSIZE THE STATE: Since taking office, the Government is streamlining the Central Government by merging several ministries, closing unnecessary institutions and offices, eliminating excessive employee benefits at the territorial level and suppressing vacancies.
LABOR REFORM: The Congress approved a law that will reduce labor costs by extending daytime working hours and reducing overtime charges and severance payments. Increased labor flexibility is key to creating new private sector employment.
MULTILATERAL INSTITUTIONS: The Uribe Government negotiated a new, two-year Extended Fund Facility agreement with the International Monetary Fund. This agreement will provide Colombia with access to international capital markets to finance its public debt.
The Government has advanced negotiations with the World Bank, Inter-American Development Bank and the Andean Finance Corporation to provide wide-ranging financial assistance for the country’s development needs.
The Government is also taking the following steps to address issues of accountability, transparency, and flexibility of the public finances:
IMPROVE FISCAL TRANSPARENCY AND ENFORCE FISCAL TARGETS: The fiscal responsibility and transparency law will provide a permanent, rules-based framework for fiscal policy. It calls for the Government to establish and announce primary surplus targets for ten years for the non-financial public sector to ensure that fiscal developments are consistent with public debt sustainability.
STRENGTHEN THE BUDGETARY PROCESS AND ENHANCE BUDGET FLEXIBILITY:
The Government will submit to Congress in 2003 a reform of the budget law that seeks to establish a budgetary process and a classification system consistent with international standards.
The Government will submit to Congress in 2003 a reform of the budget law that seeks to establish a budgetary process and a classification system consistent with international standards.
| Source: DANE Colombia Information 1 2 3 4 |
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Colombian Services, consulting for business and personal needs in Colombia, Bogota apartments for rent, Bogota bed and breakfast
private rooms, send flowers and gifts to Colombia.
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