Colombia is a liberal economy allowing free flow of trade and investment within and outside the country. The United States is the major investor in the country. The economy of Colombia was affected by the recession during 2009, resulting in a decline in exports. The economy is primarily supported by finance and insurance related establishments and the growing healthcare tourism facilities.

(Source: Economy Watch, colombiareports.com)

Gross Domestic Product (GDP)

In the third quarter of 2010, Colombia reported a GDP of COP 134,286 billion at current prices, showing an increase of 5.53% over the third quarter of 2009. Main contributors to overall GDP were establishments related to finance, insurance, real estate and company services

(Source: Central Bank)

Gross National Income (GNI) per capita, PPP

The country’s GNI per capita, PPP was USD 8,589 in 2010, as compared to USD 7,506 in 2005.

(Source: UNDP)

Income tax rate

In Colombia, income tax levied on individual varies from 0% to 33%. Income tax rate is divided into four income slabs.

(Source: DIAN)

Corporate tax rate

The corporate tax rate in Colombia is charged at a single rate of 33%.

(Source: DIAN)

Inflation rate

In 2010, the inflation rate was 3.2%.  It was highest in the education and health services. Colombia achieved its lowest inflation rate (2%) in 2009.

(Source: Central Bank, DANE)

(Source: Central Bank)

Foreign Direct Investment (FDI)

In 2010, FDI inflow was USD 6,524 million (till the third quarter). During the same period, the FDI outflow was recorded at USD 5,314 million. The United States has the highest investment in Colombia, especially in the petroleum sector.

(Source: Central Bank, investincolombia.com)

(Source: Central Bank)

Central bank assets

As of November 2010, the total assets of Banco de la República (the central bank) amounted to COP 62,760,822.18 million. Investments contribute 79.33% to the assets.

(Source: Central Bank)

Non Performing Loan Ratio (NPLR)

At the end of 2009, the NPLR for all type of loans was 4.6%, as compared to 5.3% at the end of June 2009.

(Source: Central Bank)

Consumer price index (CPI)

As of December 2010, the CPI was at 105.24 points, with a rise of 3.2% points compared to December 2009.

(Source: Central Bank, DANE)

(Source: Central Bank)

Interest rates

In 2010, the interest rate for Certificate of Deposits (CDs) was 3.87%. Since 2008, rates have been reduced considerably by the central bank to control rising inflation.

(Source: Central Bank, colombiareports.com)

(Source: Central Bank)

Monetary Aggregates

Colombia reports its monetary aggregates into means of payment (M1), monetary base, currency in circulation and broad money (M3).

M1 includes checkable deposits and currency in circulation. M3 includes liabilities (subject to reserve requirements) and currency in circulation.

(Source: Central Bank)

(Source: Central Bank)

Currency in circulation

At the end of 2010, the total currency in circulation was COP 29,769 billion. This was an increase of 16.15% from 2009.

(Source: Central Bank)

(Source: Central Bank)

Official exchange rate

As of December 2010, the official exchange rate of Colombian Pesos (COP) against 1 US Dollar (USD) was COP 1989.88.

(Source: Central Bank)

Stock market capitalisation

The Colombia Stock Exchange (CSE) was formed in 2001 with the merger of Bogotá, Medellín and Occidente stock exchanges. As of December 2010, it has a total market capitalisation of USD 217 million, when its index reached to around 15,496 points.

(Source: Central Bank, CSE)

(Source: CSE)

Government finances

Sovereign debt dynamics

Fiscal balance

The Government account reported a deficit of COP 19,567.6 billion in 2010, with an increase in deficit of COP 658 billion over 2009.

(Source: Central bank)

Total revenue and expenditure

In 2010, Colombia reported a total government revenue of COP 74,886 billion and a total government expenditure of COP 94,454 billion.

(Source: Central bank)

(Source: Central bank)

Tax Revenue

In 2010, the Government reported a total tax revenue of COP 33.96 billion. The tax revenue showed an increase of 2.2% over 2009.

(Source: colombiareports.com)

Balance of payments (BoP)

For the first three quarters of 2010, Colombia reported a net deficit of USD 6,212 million. The deficit increased by 24.22% over 2009.

(Source: Central Bank)

 

Balance of Payments (USD million)
Particulars	2010 (Till Q3)	2009	2008	2007	2006
Current Account (net)	-6,212	-5,001	-6,923	-6,018	-2,988
Capital and Financial Account	8,068	6,324	9,492	10,347	2,890
Net Errors and Omissions	73	24	53	368	120
Gross International Reserves Changes	1,929	1,347	2,623	4,698	23
Gross International Reserves Balance	27,296	25,365	24,041	20,955	15,440
Net International Reserves Balance	27,286	25,356	24,030	20,949	15,436
Changes in Net International Reserves	1,928	1,349	2,618	4,696	27

(Source: Central Bank)

Labour force

The employment rate in was 56.8 (ratio of total employed people and total number of people attained the age of employment) in 2010.

(Source: Ministry of Social Protection, Central Bank)

(Source: Ministry of Social Protection)

Unemployment rate

At the end of September 2010, the unemployment rate was 10.59%.

(Source: colombiareports.com, Ministry of Social Protection)

(Source: Ministry of Social Protection)

Minimum wage

As of 2010, the minimum daily wage rate for an individual was COP 17,166.67. This rate is general across all the sectors of the country’s economy.

(Source: Central Bank)

(Source: Central Bank)

Level of unionisation

Law in Colombia prohibits confederations and federations from striking, although the right to strike is included in the Constitution. The government does not allow workers to bargain collectively. In addition contractual agreements are used to prevent employees from establishing trade unions.

A few of the trade unions in the country are:

•          Federación Colombiana de Educadores - Colombian teachers’ federation
•          Federación Nacional Sindical Unitaria Agropecuaria (FENSUAGRO) - national agricultural workers’ federation
•         Asociación Nacional de Trabajadores Hospitalarios de Colombia (ANTHOC) - national hospital workers’ union

(Source: ITUC)

Colombia is a democratic country with a decentralised government and autonomous territorial entities.

The President exercises supreme executive powers, and heads the country as well as the government.

The legislative powers dwell within the Congress. The Congress comprises of a Senate and a House of Representatives. The Senate consists of 102 members, whereas, the House of Representatives consists of 166 members (two representatives for each territorial constituency). Members of both the committees are elected directly for a term of 4 years.

(Source: IPU)

A few of the political parties in the country are –

•          Social Party of National Unity
•          Colombian Conservative Party
•          Colombian Liberal Party
•          National Integration Party
•          Radical Change Party
•          Cambio Radical
•          Alternative Democratic Pole
•          Colombian Green Party
•          Mira Movement
•          Independent Movement of Absolute Renovation
•          Democratic Colombia Party
•          Living Colombia Movement
•          Citizen's Convergence Party
•          Liberal Opening Movement
•          Indigenous Social Alliance
•          Indigenous Authorities of Colombia
•          United Popular Movement
•         AFROVIDES Asociation

(Source:colombianueva.org)

Regulatory environment

Colombiais ranked 45^th in the 2011 Index of Economic Freedom. The economic freedom score of the country is 68.0 (out of 100), indicating a rise of 2.5 points from previous year due to improvement in business freedom, investment freedom, labour freedom and government spending.

(Source: Heritage.org)

Corruption perception

Colombia is ranked 78^th on the World’s Corruption Perceptions Index of 2010, with a score of score of 3.5 (out of 10). This indicates that criminal organisations have influence on the police, military, lower levels of the judiciary and civil service.

(Source: transperancy.org)

Freedom of information

The country is ranked 145^th on the Press Freedom Index 2010, indicating that the freedom for media in the country is highly restricted.

(Source: Rsf.org)

Judicial system

The laws in Colombia are based on the Constitution, which follows a criminal code similar to the US and is based on Spanish law.

The judicial system of Colombia consists of several courts including a Constitutional Court, a Supreme Court, a Supreme Judicial Council, a Council of State, a Attorney General's Office, the superior tribunals, the regional courts, the administrative courts and the military courts.

The Supreme Court is the apex court of jurisdiction and acts as a court of appeal. The Constitutional Court is the highest authority for the direct implementation and amendment of the constitution.

(Source: ramajudicial.gov.co)

Colombia is a sparsely-populated country with an estimated population of 45,508,205 in 2010. About 16% of the population resides in Bogotá D.C., the capital and the largest populated city of the country. In 2010, the total population was estimated at a growth rate of 1.18%.

There are about 97 males for every 100 females in Colombia.

(Source: DANE)

(Source: DANE)

According to estimates, 29,435,604 people are in the age group 15 to 64 years.

(Source: DANE)

Ethnic environment

The country’s population comprises of the following ethnicities – Black, Mulato, Afro-Colombian, Colombian natives, Afro-Caribbean, Spanish-based Creoles and Gypsies.

(Source: DANE)

Birth rate

In 2010, the birth rate was about 17.76 births per 1,000 persons. With 419,441 registered births during the same year. 23.49% of the total live births were from mothers between the age group of 10-19 years, indicating a high birth rate among teenagers. In 2010, births among teenagers declined from 2009 due to growing awareness.

(Source: DANE, DANE, colombiareports.com)

Infant mortality rate

The country reported an estimated infant mortality rate of 20.60 (deaths per 1,000 live births) during 2008, a decline with respect to 2007.

(Source: DANE)

Life expectancy

Life expectancy in the country in the period 2005 – 2010 was 76.7 years for females and 69.2 years for males.

(Source: UN)

Migration and urbanisation

The international migrant stock as of mid-year 2010 was recorded at 110,300, or 0.2% of the total population.

74.2% of the country’s population lives in urban areas. Between 2005 and 2010 the urban population grew at an annual rate of 1.7% and the rural population grew at a rate of 0.1%.

(Source: UN)

Human development index (HDI)

The country is ranked 79^th on the HDI 2010 and is amongst countries with a high human development standard. The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education) and having a decent standard of living (measured by purchasing power parity, PPP, income).

(Source: UNDP)

Literacy rate

Colombia has an adult literacy rate (people above 15 years of age) of about 93%. The literacy rate is recorded at about 98% for people between the age 15 to 24. This indicates a relatively high literacy among young people.

(Source: World Bank)

Education resources

The education system of the country is divided into: Early childhood, Preschool, Basic education, Secondary and Higher Education.

•          Early childhood education is for children up to 5 years of age
•          Preschool is compulsory and is the minimum level of education
•          Basic education is divided into primary basic (5 degrees) and secondary basic education (4 degrees)
•          Secondary education comprises of 2 degrees plus a bachelor degree
•        Higher education is divided between under-graduate and graduate degrees.

(Source: Ministry of Education)

(Source: Ministry of Education)

Healthcare

The health sector in Colombia is growing at a fast pace. The country is well-known for cosmetic surgeries and treatment of dental diseases. Due to low cost of treatments and developing healthcare technology, Colombia is a key place for medical tourism. The government plays an important role in the development of the healthcare system, including providing measures for the equal treatment of all citizens.

(Source: colombiareports.com)

In Colombia, the primary means of transport is the roadways. In 2009, 92.6% of the population preferred roadways to airways, water transport or railway transport.

(Source: Ministry of Transport)

(Source: Ministry of Transport)

Transport

The transport infrastructure of Colombia comprises of roads, railways, navigable waterways and the air network. In 2009, the total length of roads in the country was 129,485 kilometres.  The country has 1,488 kilometres of national rail lines and 184 kilometres of privately owned and operated rail network. There is 18,225 kilometres of navigable waterways.

(Source: Ministry of Transport – PDF file)

Ports

The country has 14 operational ports:

•         Port of Barranquilla
•         Port of Sociedad Portuaria Regional de Buenaventura
•         Port of Cartagena
•         Port of Cienaga
•         Covenas Offshore Terminal
•         Port of Mamonal
•         Terminal Maritimo Muelles El Bosque
•         Port of Pozos Colorados
•         Puerto Bolivar
•         San Andres Island Harbor
•         Port of Santa Marta
•         Port of Tolu
•         Port of Tumaco
•         Port of Turbo

Port of Sociedad Portuaria Regional de Buenaventura and Port of Turbo are located alongside the Pacific Ocean, while others face the Caribbean Sea.

(Source: worldportsource.com)

Airports

Colombia has 564 airports and landing fields. It comprises of 73 nation-owned, 328 privately-owned, 159 departmental and municipal and 4 army airports.

(Source: Ministry of Transport – PDF File)

Telecommunications

As of December 2009, Colombia had 5 main fixed line telephone operators – ETB, Telefónica-Telecom, EPM, Emcali and Telmex, with ETB having larger subscriber base of about 27%.

There are 3 mobile operators in the country, namely, Colombia Móvil, Telefónica Móviles and Comcel. At the end of 2009, Comcel had the largest mobile subscriber base (27.39 million); followed by Telefónica Móviles (9.96 million) and Colombia Móvil (4.01 million).

Colombia had 3,181,431 internet subscribers in 2009, an increase of 45.94% compared to 2008. Majority of the subscribers use fixed line internet services. There are number of internet service providers in the country, including EPM Telecomunicaciones, Telmex Colombia, Empresa de Telecomunicaciones de Bogota, Colombia Telecomunicaciones and others.

In 2009, there were about 621 commercial radio stations in the country.

(Source: Ministry of ICT – PDF file)

(Source: Ministry of ICT – PDF file)

Used Housing Price Index (UHPI)

In 2009, Real UHPI of the country was 104.9 points. Index was highest for Bogotá city (112.2). The Central Bank of Colombia designs, implements and calculates this index.

(Source: Central Bank, Central Bank)

(Source: Central Bank)