Chamber of Commerce Country Factsheet Last update: 10.01.2018
Your advisors at the Chamber of Commerce
- Violaine Mathurin+352423939481
- Thomas Bertrand+352423939337
Colombia was one of the three countries that emerged from the collapse of Gran Colombia in 1830 (the others are Ecuador and Venezuela). A nearly five-decade long conflict between government forces and anti-government insurgent groups, principally the Revolutionary Armed Forces of Colombia (FARC) heavily funded by the drug trade, escalated during the 1990s. More than 31,000 former paramilitaries had demobilized by the end of 2006 and the United Self Defense Forces of Colombia as a formal organization had ceased to function. In the wake of the paramilitary demobilization, emerging criminal groups arose, whose members include some former paramilitaries. The insurgents lack the military or popular support necessary to overthrow the government, but continue attacks against civilians. Large areas of the countryside are under guerrilla influence or are contested by security forces. In October 2012, the Colombian Government started formal peace negotiations with the FARC aimed at reaching a definitive bilateral ceasefire and incorporating demobilized FARC members into mainstream society and politics. The Colombian Government has stepped up efforts to reassert government control throughout the country, and now has a presence in 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.
Economic growth will continue to moderate in 2016, reflecting weak external conditions, low commodity prices and a slowdown in internal demand, but it will strengthen to 3% in 2017, as external demand recovers and the government’s infrastructure agenda is implemented. The current account deficit remains high and inflation is accelerating due to exchange rate depreciation and rising food prices resulting from El Niño. As the effects of these shocks dissipate, inflation will gradually come down in 2017.
Monetary policy has appropriately become less accommodative to anchor inflation expectations. Credit growth has weakened but inflation expectations remain high. The announced cut in public spending is appropriate to contain the headline fiscal deficit, but a comprehensive tax reform is required to increase progressivity, boost revenues and reduce the large inequalities in incomes.
Productivity growth has declined in recent years. Strengthening competitiveness through simplified customs procedures, infrastructure investment and streamlined regulation are needed to improve productivity in the medium term. The plans to broaden access to quality education will also contribute to productive transformation and allow the fruits of growth to be shared more equitably, increasing social cohesion. Reaching an agreement on the peace talks is crucial to boost confidence and investment.
Source: OECD - Economic Forecast
Subject descriptor 2014 2015 2016 2017 2018 Gross domestic product, constant prices 4.386 3.083 2.171 2.689 3.800 Gross domestic product, current prices 378.544 292.091 274.135 300.988 325.195 Gross domestic product per capita, current prices 7,942.257 6,059.600 5,623.271 6,104.796 6,521.760 Inflation, average consumer prices 2.899 4.990 7.608 4.116 3.000 Volume of imports of goods and services 7.783 -5.919 -12.062 1.240 2.583 Volume of exports of goods and services -1.332 -3.161 -9.744 2.185 5.748 Unemployment rate 9.117 8.933 9.700 9.600 9.000 Current account balance -19.489 -18.755 -14.311 -12.644 -12.668 Current account balance -5.148 -6.421 -5.220 -4.201 -3.896
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.
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",
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)
Ms. Marjorie INGHELS
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.
Other useful links
- CIA World factbook on Colombia
- Colombia Promotion Agency
- ELAN biz: European and Latin American Business services
- ELAN Network: European and Latin American Technology based Business network
- The Latin America IPR SME Helpdesk
- La Colombie sur le site de l'Awex
- Chambre de Commerce franco-colombienne
- Das ist Kolumbien
- Doing Business in Colombia
The Chamber of Commerce and the country
- 04.10.2015 - 10.10.2015
- 23.04.2015 - 24.04.2015