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Colombia
Chamber of Commerce Country Factsheet Last update: 19.06.2018

Your advisors at the Chamber of Commerce

  • Violaine Mathurin
    +352423939481
  • Thomas Bertrand
    +352423939337
Contact us: latinamerica@cc.lu

Key Indicators

Area
1,138,910 km2
Population
47,698,524 (July 2017 est.)
Government type
republic; executive branch dominates government structure
Languages
Spanish (official)
GDP
$712.5 billion (2017 est.)
Growth rate
1.7% (2017 est.)
HDI
95
Capital
Bogota

 

Introduction

Colombia was one of the three countries that emerged after the dissolution of Gran Colombia in 1830 (the others are Ecuador and Venezuela). A decades-long conflict between government forces, paramilitaries, and antigovernment insurgent groups heavily funded by the drug trade, principally the Revolutionary Armed Forces of Colombia (FARC), escalated during the 1990s. More than 31,000 former United Self Defense Forces of Colombia (AUC) paramilitaries demobilized by the end of 2006, and the AUC as a formal organization ceased to operate. In the wake of the paramilitary demobilization, illegal armed groups arose, whose members include some former paramilitaries. After four years of formal peace negotiations, the Colombian Government signed a final peace accord with the FARC in November 2016, which was subsequently ratified by the Colombian Congress. The accord calls for members of the FARC to demobilize, disarm, and reincorporate into society and politics. The accord also committed the Colombian Government to create three new institutions to form a “comprehensive system for truth, justice, reparation, and non-repetition,” to include a truth commission, a special unit to coordinate the search for those who disappeared during the conflict, and a “Special Jurisdiction for Peace” to administer justice for conflict-related crimes. The Colombian Government has stepped up efforts to expand its presence into every one of its administrative departments. Despite decades of internal conflict and drug-related security challenges, Colombia maintains relatively strong democratic institutions characterized by peaceful, transparent elections and the protection of civil liberties.

Source: The CIA World Factbook - Colombia

 

Macroeconomic indicators

Growth is projected to pick up to about 3%, as lower interest rates, stronger infrastructure spending, lower corporate taxes and higher oil prices all boost investment. Private consumption will also strengthen, as falling inflation lifts real wages. Exports will improve on the back of a stronger outlook for trading partners. Unemployment will start to fall. Social indicators are improving, but informality and inequality remain high.

The current monetary policy stance is appropriate given current inflation, but a somewhat more accommodative monetary policy would be needed if inflation and inflation expectations continue to fall. Fiscal policy strikes an adequate balance and will need to remain moderately prudent so that the deficit declines gradually, in line with the fiscal rule. Significant social spending needs may require raising more revenue over time. Productivity would be boosted by reforms to improve the business environment and the quality of education. Further efforts to reduce labour market informality, such as by reducing non-wage labour costs, and to reduce gender gaps, by expanding the provision of childcare, would make growth more inclusive.

Source: OECD - Economic Forecast

IMF Statistics:

Subject descriptor20142015201620172018
Gross domestic product, constant prices
Percent change
4.3863.0832.1712.6893.800
Gross domestic product, current prices
U.S. dollars (Billions)
378.544292.091274.135300.988325.195
Gross domestic product per capita, current prices
U.S. dollars (Units)
7,942.2576,059.6005,623.2716,104.7966,521.760
Inflation, average consumer prices
Percent change
2.8994.9907.6084.1163.000
Volume of imports of goods and services
Percent change
7.783-5.919-12.0621.2402.583
Volume of exports of goods and services
Percent change
-1.332-3.161-9.7442.1855.748
Unemployment rate
Percent of total labor force
9.1178.9339.7009.6009.000
Current account balance
U.S. dollars (Billions)
-19.489-18.755-14.311-12.644-12.668
Current account balance
Percent of GDP
-5.148-6.421-5.220-4.201-3.896
Colored cells are estimates

Source: IMF Statistics

 

Luxembourg and the country

Existing conventions and agreements

Non double taxation agreement 

In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.

None

Air Services agreement

Agreement between the Government of the Grand-Duchy of Luxembourg and the Government of the Republic of Chile concerning air services between their respective territories, signed at Luxembourg on 25 February 2002, hereinafter referred to as "Chile-Luxembourg Agreement",

Source: EUR-Lex - Access to European Union Law

 

 

 

Further information

Foreign Trade

The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.

You can see the statistics on the website of the Statec.

Contact points in Colombia

Luxembourg is represented by the Royal Embassy of the Netherlands situated in Bogota.

Economic and Commercial Attache (AWEX): Mrs Marjorie INGHELS

Calle 92 No 11 – 51 Of. 503
BOGOTA - COLOMBIA
Tel : + 57 1 744 95 54
E-Mail: m.inghels(at)awex-wallonia.com / bogota(at)awex-wallonia.com

Source: AWEX

Country risk as defined by Office du Ducroire for Colombia

Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.

Link: Ducroire Office - Country Risk for Colombia

Other useful links