Colombia's impressive economic performance over the past decade has caught the attention of Australia and other foreign investors. Colombia is one of the countries with greater economic stability in the region. In the past five years, the economy grew by an average 4.8 per cent. The country's middle class has been increasing consistently from about 30 per cent of the population in 2014 to an expected 37 per cent in 2020 and 46 per cent in 2025 (Source: Procolombia, Why Colombia 2016).
Colombia boasts strong macroeconomic fundamentals, an environment conducive to business and a proactive approach to economic liberalisation, all of which make it a prime target for Australia’s expanding engagement with Latin America.
Oil accounts for the largest portion of the country’s exports, generating about 20 per cent of government revenue. The shrap drop in crude in 2016 will dramatically affect government agencies, with areas such as education, infrastructure, health and social investment being targeted for budget reductions.
Peace talks with the armed FARC and ELN groups are ongoing. In June 2016 an accord was agreed for "A Bilateral and Definitive Ceasefire, Cessation of Hostilities, and Laying Aside of Weapons". President Juan Manuel Santos is confident the talks will culminate in a peace agreement, paving the way for a new era in Colombia, including major new investment and economic activity.
More information on doing business in Colombia