In a context where global foreign investment increased by 10.9% in 2013, in particular in Europe (+25.2%) and in Latin America (+17.5%), FDI flows to developing economies reached a new high of US$759 billion. However macroeconomic fragility and policy uncertainties are driving investors to caution.
The improvement of the security conditions during these recent years has contributed to re-establish investor's confidence. FDI inflows, which attained a record level in 2008, dried up in 2009 due to the global economic crisis. However, the economic growth remained strong (+4.7% in 2012 and +4% in 2013) and foreign investors remain present in Colombia, contributing to the regular increase of FDI since 2010. The two main destinations of FDI are the hydrocarbon and mining sectors (they represented 50% of the FDI in 2013), but a diversification has been observed in the last recent years, in particular in telecommunication and tourism. In the context of economic stability, FDI is registering significant increases since 2011, a tendency which should continue in 2014. In 2013 FDI reached USD 15.823 billion.
In Colombia FDI benefit from a very attractive legislative framework. The ratification of a bilateral free-trade agreement by the USA in October 2011 and the establishment of special regulations in the free zones have contributed to improve the country's appeal. Moreover, the richness of its natural resources and a significant domestic market are Colombia's main assets.
Information on the 2013 FDI influx in this region can be accessed in the Global Investment Trade Monitor published in January 2014 by the United Nations Conference on Trade and Development (UNCTAD).
|Colombia||Latin America & Caribbean||United States||Germany|
|Index of Transaction Transparency*||8.0||4.0||7.0||5.0|
|Index of Manager’s Responsibility**||8.0||5.0||9.0||5.0|
|Index of Shareholders’ Power***||6.0||9.0||5.0|
|Index of Investor Protection****||8.3||5.0||8.3||5.0|
Source: Doing Business - Last Available Data.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
|Foreign Direct Investment||2011||2012||2013|
|FDI Inward Flow (million USD)||13,405||15,529||16,772|
|FDI Stock (million USD)||96,017||112,069||127,895|
|Performance Index*, Ranking on 181 Economies||32||-||-|
|Potential Index**, Ranking on 177 Economies||37||-||-|
|Number of Greenfield Investments***||129||117||145|
|FDI Inwards (in % of GFCF****)||16.9||17.6||18.4|
|FDI Stock (in % of GDP)||28.5||30.3||33.5|
Source: UNCTAD - Last Available Data.
Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.
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Last Updates: October 2014