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Colombia Colombia

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Colombia

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EconomicPoliticalStructural

Colombia – Quick View
ECR score58.72 (Mar 2011)
ECR rank51 (Mar 2011)
Economic
GDP (2010 Q3)USD 72.17 billion
GNI per capita PPP (2010)USD 8,589
FDI inflow (2010 Q3)USD 6,524 million
Inflation (2010)3.2%
Central bank assets (November 2010)USD 33,423.06 million
Unemployment rate (2010 Q3)10.59%
Government deficit (2010)USD 10.19 billion
Tax revenue (2010)USD 0.017 billion
Political
Government typeDemocratic
Recent political crisisNA
Economic freedom score45th
Freedom of information score145th
Corruption perception index78th
Structural
Birth rate17.76 per ‘000
Population balanceUnder 14 – 28.5%
Population balanceAbove 64 – 6.7%
Life expectancy yearsMale – 76.7 years
Life expectancy yearsFemale – 69.2 years
Mortality rate5.24 per ‘000
Literacy rate93%
Internet access (2009)7.07%

[Top] Economic Overview

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 Colombia GDP

(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.

Colombia GNI per capita, PPP

(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.

 

Individual income tax rates

Income slabs (COP)

Tax rate (%)

Up to 1,090

0

1,091 to 1,700

19

1,701 to 4,100

28

4,101 and above

3

(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)

Colombia Inflation rate

(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)

Colombia FDI

(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)

[Top] Financial Indicators & Government Financial

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)

 

Consumer Price Index

Month

CPI

2010

December

105.24

November

104.56

October

104.36

September

104.45

August

104.59

July

104.47

June

104.52

May

104.40

April

104.29

March

103.81

February

103.55

January

102.70

2009

December

102.00

November

101.92

October

101.98

September

102.12

August

102.23

July

102.18

June

102.22

May

102.28

April

102.26

March

101.94

February

101.43

January

100.59

(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)

 

Interest rates of CDs (%)

Year

90 days

180 days

360 days

2010

3.68

3.87

4.21

2009

6.36

4.37

4.60

2008

9.75

10.58

10.92

2007

8.11

8.84

8.46

2006

6.31

7.10

7.83

2005

7.03

7.15

7.11

2004

7.80

8.52

8.88

2003

7.80

8.69

9.01

2002

8.92

8.47

8.33

2001

12.47

12.07

12.28

(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)

Monetary Aggregates (COP billion)

Month

Monetary base

M1

M3

2010

December

44,874.98

62,089.63

220,062.94

November

39,254.91

53,274.14

213,542.24

October

38,233.45

51,020.28

207,484.17

September

37,579.01

49,442.23

203,466.36

August

37,189.22

50,387.09

203,158.36

July

36,935.55

49,402.20

202,651.98

June

35,182.67

48,963.11

200,864.02

May

35,610.14

47,511.05

198,704.91

April

34,784.26

48,071.85

198,045.93

March

36,325.16

47,688.61

198,703.01

February

36,802.72

47,681.70

198,417.83

January

37,705.55

48,348.31

198,441.07

2009

December

38,301.46

52,015.34

197,745.90

November

34,599.70

46,063.46

195,322.29

October

33,466.48

43,566.38

190,250.05

September

33,204.18

42,002.75

187,247.94

August

32,808.21

43,408.61

188,368.20

July

33,781.22

42,821.35

189,058.77

June

32,777.22

43,630.54

187,612.70

May

30,853.01

41,822.62

185,835.22

April

33,418.03

42,501.78

187,065.40

March

32,939.66

42,600.83

185,126.15

February

33,635.61

43,439.47

185,451.02

January

33,390.25

43,233.61

183,919.33

(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)

 

Currency in Circulation (COP billion)

Quarter

Total currency

2010

Q4

29,769.49

Q3

23,316.98

Q2

23,363.32

Q1

22,620.18

2009

Q4

25,630.79

Q3

20,645.26

Q2

21,308.60

Q1

21,371.42

(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)Colombia Exchange rate

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)

Colombia Market capitalisation
(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)

Colombia Government revenue and expenditure

(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)

[Top] Labour Force and Employment Overview

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)

Colombia Economically active population

(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)

Colombia Unemployment rate

(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)

 

Minimum daily wage

Year

Wage (COP)

2010

17,166.67

2009

16,563.33

2008

15,383.33

2007

14,456.67

2006

13,600.00

2005

12,716.67

2004

11,933.33

2003

11,066.67

2002

10,300.00

2001

9,533.33

(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)

[Top] Political Stability

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 45th 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.

Colombia Economic freedom indices

(Source: Heritage.org)

Corruption perception

Colombia is ranked 78th 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 145th 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)

[Top] Demographic Overview

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%.

Colombia Population gender

 

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

(Source: DANE)

 

Population growth during 2001-2010

Year

Males

Females

Total

2010

22,465,760

23,042,445

45,508,205

2009

22,203,234

22,774,524

44,977,758

2008

21,942,197

22,508,063

44,450,260

2007

21,682,836

22,243,198

43,926,034

2006

21,425,328

21,980,059

43,405,387

2005

21,169,835

21,718,757

42,888,592

2004

20,911,536

21,455,992

42,367,528

2003

20,653,652

21,193,769

41,847,421

2002

20,395,870

20,931,589

41,327,459

2001

20,137,593

20,668,720

40,806,313

(Source: DANE)

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

 

Population Age Structure

Age group

Total

Males

Females

Below 14 years

13,010,925

6,646,484

6,364,441

15 – 64 years

29,435,604

14,436,186

14,999,418

65 years and above

3,061,676

1,383,090

1,678,586

(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 79th 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)

[Top] Soft Infrastructure

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)

 

Education statistics (2010)

Facilities

Number

Establishments:

25,554

Official

13,865

Informal

11,689

Student enrolments:

9,306,787

Basic primary

4,400,965

Basic secondary and intermediate

4,264,697

Preschool

641,125

(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)

[Top] Hard Infrastructure

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)

 

Intra-national movement of passengers by modes (numbers)

Year

Roadways

Airways

Waterways

Railways

2009

177,855,357

10,667,015

4,081,633

165,709

2008

168,021,219

9,559,140

3,543,441

250,798

2007

172,127,092

9,308,142

3,297,786

181,390

2006

164,118,093

8,880,052

3,572,263

153,470

2005

156,568,326

8,290,758

3,789,419

126,219

2004

128,893,186

8,174,229

3,531,395

49,400

2003

120,201,516

7,986,949

4,148,706

17,363

2002

99,570,498

8,361,829

3,329,199

36,695

2001

99,009,731

8,206,065

3,026,826

54,916

(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.

 

Transport infrastructure (kms)

Year

Roadways

Railways

2001

129,256

2,228

2002

129,261

2,212

2003

163,635

2,231

2004

164,184

2,137

2005

164,257

2,137

2006

164,278

2,137

2007

164,183

1,663

2008

164,183

1,672

2009

129,485

1,672

(Source: Ministry of TransportPDF 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 TransportPDF 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 ICTPDF file)

 

Telecommunication subscription statistics (2009)

Service

Subscribers

Fixed line telephone

7,454 million

Penetration rate (%)

16.62%

Mobile phone

41.15 million

Penetration rate (%)

93.4%

Internet

3.18 million

Penetration rate (%)

7.07%

(Source: Ministry of ICTPDF 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)

 

Colombia UHPI

(Source: Central Bank)

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