President Ivan Duque celebrates the increase of 68% of foreign investment in Colombia registered for this first trimester of 2019. The president assures that this is a sign of optimism and trust for the country. This positive result also favors the forecast of growth for Colombia.
According to the last report of The World Bank: “Global /economic Forecast”, Colombia’s gross domestic product (PIB) will increase in a 3,5% in 2019. Also, direct foreign investment reached 3.335 million dollars from January to March (a huge increase of 68% compared to the same period, last year). This numbers are a clear result of the economic reactivation of the country, were foreign investment wants to come because they can see a place with exceptional conditions.
Foreign investment is reaching sectors that are very important for Colombia, such as the mining / energy (60%) and manufacturing (more than 500 million dollars) sectors and this will result on an improvement of economic conditions for the country.
On the other hand the IED(direct foreign investment), increased on a 70% during the first trimester of this year, due to the new participations of capital done in Colombia(an increase of 145%) and capital reinvestment represented almost 1000 million dollars. Last but not least are the debt instruments that registered a direct foreign investment of 828 million dollars this first trimester (500% of growth compared to the same period in 2018).
President Ivan Duque assures that “there are clear signs on the law of economic reactivation, because Colombia has decreased the taxing load to be more competitive among other countries”. He also mentioned Colombia’s commitment to a productive transformation and an industrial and technological reconversion.
An even more positive aspect for Colombia’s economic forecast for the rest of 2019 is that Colombia has a better forecast than the rest of the region and the world. Global economic growth forecast is 2, 6% (Colombia’s is 3, 5%). This global forecast is due to the increasing commercial tension and deceleration of some of the biggest economies for this year, like US (2, 5%), China (6, 2%) and Europe (1, 2%).
Under this perspective Colombia’s gross domestic product (PIB) will increase 1 more point than the rest of the world’s and a lot more for the Latin American economy. In Brazil activity indicators remain slow, Chile and Mexico are experiencing decelerations and Argentina’s economy continues to shrink.
Among the 26 analyzed economies of the world, Colombia is occupying the 8th highest growth of the year exceeded by countries like Granada, Peru, Dominican Republic, Bolivia, Panama and Honduras.