Colombia 

Colombia country policy

Policy established 12 September 2008

• ILC, bank guarantee or central public guarantee (conditional)
• The country ceiling is 1500 mln euro
• Early warning signal 1150 mln euro
• - of which was used as at 2012-02-29 18 mln euro

Country class: 4

Colombia country facts

Atradius Dutch State Business Economic Research
Country Report last updated 20 July 2011
Country COLOMBIA

Political Situation
Improved Security But Still Not Stable

Head of state
President Juan Manuel Santos.

Form of government
Majority government backed by the centre-left Partido Liberal, centre-right Partido Conservador and centrist Cambio Radical (appr. 80% of the seats in Congress).

Internal Economic Situation
Rather Good

General situation
Despite the dip in 2009, sustained GDP-growth (> 5% p.a.) thanks to private consumption/investments (especially  mining) and buoyant exports, also supported by resumed trade with Venezuela (lift of embargo). Manufacturing and mining are leading sectors in GDP-growth. Agriculture was hit by severe floodings. Risen domestic food prices due to the floodings will push up inflation to 3.5% in 2011/’12. The banking sector is well provisioned and solid. Rather poor TI Corruption Index: 78th of 178.
 
External Economic Situation
Solid

Main sources of foreign exchange
Industrial goods (44%), petroleum (26%), coal (11%) coffee (6%), workers’ remittances.

Main foreign markets
United States (33%), EU (16%), Venezuela (10%).

Main expenses of foreign exchange
Intermediate products (48%), capital goods (33%).
 
Balance of payments  
Despite recovered exports, the trade balance has weakened in 2011 because imports increased even faster. The current account shows structural deficits of appr. 3% GDP, easily financed by capital imports (FDI, portfolio) intensifying upward pressure on the peso rate of exchange.