Colombia Industry Sectors
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Colombia’s industry sectors experienced a sharp drop in production by 5.9% in 2009, while sales fell by 3.3%. According to the National Business Association of Colombia (ANDI), the 2008-2009 economic downturn had affected all Colombian industries, which resulted in a slump in industrial sales. The worst affected industries were glass, vehicles, auto products and rubber, where sales and production declined by more than 20%. The industrial production slump was attributed to the decline in consumer demand, fall in peso’s exchange rate, and declining cost of raw materials.[br]
Colombia’s industry sectors experienced a sharp drop in production by 5.9% in 2009, while sales fell by 3.3%. According to the National Business Association of Colombia (ANDI), the 2008-2009 economic downturn had affected all Colombian industries, which resulted in a slump in industrial sales. The worst affected industries were glass, vehicles, auto products and rubber, where sales and production declined by more than 20%. The industrial production slump was attributed to the decline in consumer demand, fall in peso’s exchange rate, and declining cost of raw materials.[br]
Although the effects of the downturn were not as adverse as in Spain, Japan and Germany, several Colombian enterprises went out of business. However during 2H 2009, industrial production and sales experienced an upturn in contrast to 1H 2009, when production and sales fell by 7%. According to Colombia’s national statistics agency DANE, Colombia’s industry sectors are recovering, albeit by taking a toll on employment. Colombia’s industrial production grew by 2% year on year (YOY) in November 2009 led by a surge in production of sugar and beverages. The sugarcane manufacturing industry grew by 42% and beverages industry grew by 24%. However, paper and pulp industry output fell by 13% and machinery and electrical appliances manufacturing also declined by 23%.
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Colombia Industries: Mining
Colombia’s mining and energy industry is expected to raise more than $10 billion in 2010. This industry has gathered traction of late, due to the increased hydrocarbon production of more than 730,000 b/d. The production is projected to reach 800,000 b/d in 2010. Colombia has hydrocarbon reserves of almost 1.6 billion barrels.
Colombia Industries: Oil
Colombia’s oil exports rose to $10.27 billion in 2009 mainly due to FDIs worth $2.95 billion. The oil industry contributed more than 3.2% to Colombia’s GDP, up from 1.78% in 2006. Colombia entered 2010 with oil reserves of more than 2 billion barrels with the output expected to reach 800,000 in 2010. Daily oil production grew by almost 49% since 2006 from 529,000 b/d.[br]
Colombia Industries: Automobile
Automobile production in Colombia fell by 7.5% to 200,000 units in 2009 in line with the global economic slowdown. The drop was also attributed to the impact on credit facilities, weaker peso and higher running costs. Major car makers such as GM, Renault and Hyundai suffered major losses. Vehicle sales in Colombia reached record highs in 2007 before plummeting by 16% YOY in 2008 where vehicle sales reached 217,048 units.
