Emerging Countries: the opportunity
“The new BRICs are Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa (CIVETS). They are countries with major populations, dynamic, diverse economies, political stability and each of them has a brilliant future. Any company with global ambitions will have to take immediate action in these markets."
Colombian is known in America and around the world to be an Emerging Country with excellent social and business activities contributing in the process of rapid economic growth and FDI attraction.
The following graph shows an Economist Intelligence Unit forecast on the FDI 2010 inflows of the CIVETS and the FDI inflows as a proportion of the 2010 GDP.
* Note: 2010 forecast
Source: Economist Inteligence Unit (EIU)
Taking this into account, Colombia stands out as the best investment opportunity in the Emerging Countries.
Colombian emerging economy: An improved business environment
Historically, Colombia has shown outstanding economic stability. Over the last decade, Colombia has shown a trend of positive GDP growth and has been the least volatile country in the region. Furthermore, Colombia’s economic expansion has been higher than World ?s and other Latin American countries. During the past ten years, the Colombian economy grew by 4% per year and hasn’t experienced negative economic growth. In 2009, Colombia's GDP grew 0,4%, a positive growth during the global recession, exceeding all expectations, to be located above the variation shown by the World -2.2% and Latin America - 2.7%.
GDP Growth: Colombia vs. World (2000 – 2010)
Source: DANE (National Accounts), EIU (Market Indicators & Forecasts)
* Forecast: Economist Intelligence Unit (EIU)
In only eight years, FDI grew 200%, exports 174%, and international tourism 132%
Exports have increased since 2002, growing from USD 12 billion to USD 33 billion. Foreign Direct Investment (FDI) has also grown significantly in the last decade. In 2002, Colombia received FDI flows of USD 2.1 billion while in 2009 the FDI flows increased to USD 7.2 billion. During the last year, FDI flows showed a 32% reduction; remarkable figure compared with -42% variation of the Region.
The number of tourists that visited Colombia has doubled since 2002, from 661 thousand travelers to 1.7 million in 2009. Between 2008 and 2009 the number of tourists1 grew by 17%, eight times more than the overall world growth of 2%.
During 2009, Colombia was one of the best economic performers in the Region
Foreign Direct Investment (2000-2010) USD Millones
During the last year, FDI flows showed a 32% reduction; remarkable figure compared with -42% variation of the region Source: Banco de la República