Colombia Economic Forecast

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When it comes to the economy for Colombia, tremendous growth has been seen from 2002 to 2007. In fact, in 2007 alone, growth had reached more than 7% primarily because of increasing commodity prices, the URIBE pro-market economic policy, and advancements specific to domestic security. Other changes that have boosted Colombia’s economy are the investor reform for the hydrocarbon sector, as well as import and export trade between Colombia and the United States.


When it comes to the economy for Colombia, tremendous growth has been seen from 2002 to 2007. In fact, in 2007 alone, growth had reached more than 7% primarily because of increasing commodity prices, the URIBE pro-market economic policy, and advancements specific to domestic security. Other changes that have boosted Colombia’s economy are the investor reform for the hydrocarbon sector, as well as import and export trade between Colombia and the United States.

In fact, because of the Promotion Agreement, called the CTPA, in-depth negotiations have created record levels of Foreign Direct Investment. While Colombia has experienced vast improvements in the economy, the country has been challenged with drug trafficking and high levels of underemployment. In addition, the government realizes that to manage and sustain economic growth, the country’s facilities and infrastructure need significant updating.

Colombia GDP Forecast

To battle the challenges for the GDP of Colombia, the government has taken several steps to include cutting capital controls, organizing emergency credit lines from several multilateral institutions, and promoting improved investment incentives. Some of the ways in which the Colombia government expects this to occur is by subsidizing the free trade zone mechanism, legal stability contracts, and new treaties for bilateral investment and import/export agreements. In addition, Colombia’s government is now encouraging the exporting countries to diversify, moving customers away from Venezuela and the US, which are the largest trading partners with Colombia. In looking at the Colombia GDP (Gross Domestic Product, Current Prices, US Dollar) for average change of consumer spending, 2009 ended up at $228.836 billion in US dollars. This number was a reduction of 4.73% from 2008’s number of $240.20 billion. With this, Colombia was ranked as number 36 around the world. Now, looking forward to 2010, forecasters believe a 17.16% increase will happen, closing out the year at $268.11 billion and for 2015, the numbers are expected to change to around $276.327 billion in US dollars.

Colombia Unemployment Forecast

The Colombia population  is estimated around 45 million, which gives the country a position of 28 for world rankings. Forecasters believe that by 2010, the population will be close to what it is today. Of the approximate 20.03 million people in Colombia working, the majority of those people hold jobs in the services sector but other sectors include industry and agriculture. Although unemployment was relatively high in 2008 at 11.3%, unfortunately the latest report shows that Colombia unemployment rate is now as high as 12%. Even with GDP growth, some 20% of the country’s population still lives below the poverty line.

Colombia Inflation Rate Forecast

Next, looking at the Colombia inflation rate for average change of consumer pricing, 2008 closed out at 7.00% but by the end of 2009, numbers had changed to 4.202%, which was a reduction of 39.95%. For the year 2009, Colombia was in the number 72 spot specific to inflation on a world basis. Experts believe that 2010 will have an inflation rate of 3.50% and for 2015, the numbers are forecasted slightly lower at 3%.

Colombia Current Account Balance Forecast

To determine the Colombia Current Account Balance , forecasters use primary classifications to include goods, services, current transfers, and income, with the focus of transactions being those between an economy and the remainder of the world. In 2009, the account balance was at a negative $4.232 billion in US dollars, which was a decrease of 38.18% over 2008, which closed at a negative $6.85 billion. With this, the world ranking position of Colombia was 156. In looking at 2010 forecasts, experts believe the numbers will be 98.11% higher or a negative $8.38 billion. Then the 2015 forecast shows another change to a negative 4.169 billion, United States dollars.

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