Overview

Economic growth in Colombia expected to pick up with stimulus initiatives
OBG
plus

Following congressional approval of a landmark peace agreement, and a late-2016 tax reform package (see analysis), 2017 looks to be a year of significant promise for the Colombian economy. The country has been on the recovery since the 2014 collapse in oil prices, which predominantly affected exports, government revenues and the exchange rate. As a result, the trade balance and current account…

Overview

Increased lending, greater consolidation and improved regulation drive banking in Colombia
OBG
plus

Although the Colombian economy has been affected by a slowdown in recent years, the country’s banking sector has remained resilient. The majority of the impact has been felt in the external sector, particularly due to changes in the foreign exchange rate. Meanwhile, lending growth remained relatively strong until mid-2016, when the combined effects of weak investment and higher interest rates…

Overview

Colombia's capital markets perform well despite recent challenges
OBG
plus

Developments in Colombia’s capital markets in recent years reflect those in the wider economy. The well-established sovereign fixed-income market has seen increased issuance as the government seeks to finance its widening budget deficit while rolling over its existing stock of debt. Albeit much smaller in scale, corporate debt issuance also picked up in 2016, amid an inflationary and monetary-tightening…

Overview

The Colombian insurance industry in good position to increase its rate of growth
OBG
plus

Colombia is the fifth-largest insurance market in Latin America by premiums collected. However, it features weak penetration and density – measures of premiums compared to the size of the economy and the population, respectively – compared to other large markets in the region. Nonetheless, the fact that the country has been able to weather the recent economic storms better than many in…

Overview

Peace deal and offshore exploration renew interest in Colombian energy
OBG
plus

After a challenging 2016, the Colombian oil industry entered 2017 with renewed optimism. In line with other crude-exporting countries, the fall in global oil prices starting in mid-2014 affected investment in the sector as well as government coffers. Country-specific problems during this time included a continued security threat from armed rebel groups in remote regions, and a lack of major…

Overview

The reinvigorated Colombian mining industry receives strong state support
OBG
plus

For a country with three Andean mountain chains and a history of gold and silver production, mining has remained a relatively small contributor to the modern Colombian economy. Between 2012 and 2015 the sector contributed only around 2% to GDP and 20% of exports, with the vast majority coming from two giant coal projects: the Cerrejón mine in La Guajira department and La Loma mine in César…

Overview

Construction and industry drive growth in Atlántico, Colombia
OBG
plus

Located in northern Colombia, the Atlántico department is one of 32 departments in the country. It is part of the Colombian Caribbean region, with the port city of Barranquilla as its capital. According to the National Administrative Department of Statistics, the population is estimated at 2.5m. In recent years, Atlántico has stood out for its positive economic performance in both absolute…

Overview

Developing infrastructure and reducing transport costs top priorities for Colombia
OBG
plus

Colombia’s economy experienced a boom over the last decade, with per-capita GDP more than doubling and foreign direct investment growing tenfold. Infrastructure and transport development, however, has been struggling to keep pace with the country’s rapidly expanding economy. Public investment in infrastructure currently makes up just 1.3% of GDP, below that of Colombia’s Latin American…

Overview

Key real estate segments grow in Colombia
OBG
plus

Structural precaution against risk, along with an influx of investment coming from government housing programmes as well as private investors, continue to fuel Colombia’s housing market. Although government support has primarily focused on the lower-income segments of the population, the expansion of the middle class has helped move housing programme financing up the income echelon. At the…

Overview

Infrastructure plans in Colombia to increase building activity
OBG
plus

With plans set to modernise transport networks and government-led housing programmes expanding the availability of homes, Colombia’s construction sector remains an essential part of the economy. Although the macroeconomic environment has required the government to exercise fiscal discipline, which may cause several projects to be postponed or delayed, it is unlikely that the ambitious infrastructure…