WEEKLY REVIEW OF THE COLOMBIAN ECONOMY April 1 – 5
2012 FDI into Colombia Totaled US $15.8 Billion
According to the Ministry of Trade, Foreign Direct Investment (FDI) flow into Co-lombia reached a record high of US $15.8 billion in 2012. This figure represents an increase of 17.8% over 2011 FDI. FDI in industry totaled US $2 billion, a growth of 159%, while FDI in non oil or mining sectors totaled US $8.12 billion.
Central Bank Cuts Interest Rate to Boost Economic Activity
The Colombian Central Bank reduced its interest rate to 3.25%, the fifth con-secutive decrease since July 2012, bringing the current rate to its lowest level since February 2005. The Bank’s board of directors made the decision in an at-tempt to boost economic activity in response to the Colombian economy’s levels of growth, which are currently below the country’s economic potential.
Colombia’s 2012 Foreign Debt Grew 3.6%
Although Colombia’s foreign debt grew 3.6% in 2012, the increase was consid-erably lower than in 2011 (17.2%) and 2010 (20.5%). Private and public foreign debt in 2012 grew by US $2.7 billion.
For complete information please visit – http://bit.ly/10ARDL2
First Seven Months of the U.S. – Colombia FTA
Win-Win Trade from June through December of 2012:
- U.S. exports to Colombia totaled $10 billion, a 17.6% increase over the same period in 2011.
- U.S. imports from Colombia totaled $13.7 billion, a 1.3 % decrease compared to 2011 (Many Colombian exports already benefited from ATPDEA preferences prior to the FTA and the U.S. economy contracted the last three months of 2012).
- Colombia was the fourth most significant destination of U.S. exports in Latin America.
- The U.S. remained the primary destination of Colombian exports.
For complete information please visit – http://bit.ly/WE6nur
Webinar: Investment and Trade Opportunities Related to Colombian Infrastructure.
Please join us for the U.S. Embassy in Bogotá’s upcoming webinar: Investment and Trade Opportunities Related to Colombian Infrastructure.
- Time/Date: 4pm EDT (3pm COT) on Tuesday, March 19th.
- Speakers: U.S. Ambassador to Colombia Michael McKinley and Colombia’s National Infrastructure Agency President Luis Andrade.
- Details: The webinar will focus on opportunities for U.S. firms in Colombia’s planned expansion of its transportation infrastructure sector (including roads, rail, ports, airports, and rivers). Participants will have the opportunity to pose questions directly to Ambassador McKinley and President Andrade during the Q&A portion of the call. The webinar is free and will be held in English.
- More information is available here: http://www.state.gov/e/eb/directline/events/205596.htm
- To sign up, please click here: http://www.state.gov/e/eb/directline/contact/205595.htm
WEEKLY REVIEW OF THE COLOMBIAN ECONOMY February 18 – 22
2012 a Record Year for Foreign Trade
Colombia had a record year for foreign trade in 2012. According to the National Statistics Department (DANE), from January-December 2012, the country exported US$ 60.6 billion FOB and imported US$ 58.6 billion CIF for a trade balance of US$ 4.9 billion FOB. Imports showed a 7.2% growth over 2011. Exports showed 5.7% growth over 2011.
Biggest Colombian Financial Acquisition Abroad
Bancolombia S.A., Colombia’s biggest private bank, acquired the operations of HSBC Panama for US$ 2.1 billion. This transaction is the largest of any Colombian financial institution, surpassing the acquisition of BAC Credomatic in Central America by Colombia’s Grupo Aval for US$ 1.9 billion in 2010.
Colombia Signs Free Trade Agreement with South Korea
Minister of Trade Sergio Diaz-Granados and his South Korean counterpart signed the agreement on February 21 in Seoul. Congresses from both countries must now ratify the FTA before it enters into force.
Two New Board Members for the Central Bank
President Santos announced his new appointees for the Central Bank (Banco de la Republica) board of directors on February 21. Deputy Finance Minister Ana Fernanda Maiguashca and economist Adolfo Meisel, who heads the Central Bank’s branch in Cartagena, were chosen by the President to be the board’s co-directors.
For complete information please visit – http://bit.ly/ZxPe6r
Colombia’s Economic Advances Offer More Opportunities for U.S. Business
by Laura Lochman, Economic Counselor, U.S. Embassy Bogota
Over the past decade, Colombia has dramatically improved security throughout the country with the help of more than $8 billion in U.S. government assistance, and has achieved an average economic growth rate of 5 percent. The entry into force of the U.S.-Colombia Trade Promotion Agreement (TPA) on May 15, 2012, and the nine other free trade agreements Colombia now has in force, provide additional opportunities for Colombian economic expansion.
Although Colombia still faces challenges, including infrastructure deficiencies and income inequality, the country of 46 million boasts a growing economy with investment grade status, a rising middle class, and a government that is committed to democratic prosperity and regional leadership.
Since taking office in August 2010, the Santos Administration has demonstrated political will to create the conditions for economic development, job growth, and poverty reduction. Sound fiscal and macroeconomic management allowed Colombia to claim the triple crown of seeing its credit ratings increased to ‘Investment Grade’ level by Standard and Poor’s, Moody’s and Fitch Ratings. Colombia has reduced the unemployment rate to single digits (8.9 percent in October 2012), kept inflation in check (currently less than 3 percent), and attracted record foreign direct investment (FDI) of more than $13 billion in 2011 – a 50 percent increase over the previous year. For the two first quarters of 2012, the Central Bank recorded FDI of $7.8 billion, and the government expects total 2012 FDI to exceed $15 billion. About 250 U.S. companies operate in Colombia, with FDI concentrated in mining, hydrocarbons, and manufacturing (followed by consumer products, high tech, and franchising).
To read the complete article: http://bit.ly/12W1XR7
WEEKLY REVIEW OF THE COLOMBIAN ECONOMY February 11 – 15
Coal Production for 2012 Lower than Expected
According to Colombia’s National Mining Agency, coal production for 2012 reached 89.2 million tons, falling short of the government’s goal of 97 million tons.
Industrial Activity Grew 0.7% in 2012
According to the National Business Association of Colombia (ANDI), manufacturing production grew only 0.7% in 2012.
Colombian Investment in Road Reconstruction
The Colombian National Risk Management Agency announced that it will invest US $88.3 million in the acquisition of heavy machinery for the reconstruction of roads affected by the rainy season. The machinery will be part of a program that would make resources available to municipalities and departments to allow them to update their secondary roads. For more information on the process contact Sandra Calvo, sandra.calvo@dgr.gov.co .
For complete information please visit - http://bit.ly/12RHEEf
First Four Road Concessions Opened for Pre-Qualification
The Colombian National Infrastructure Agency (ANI) invites companies to participate in the pre-qualification process for the following Public Private Partnership road concessions:
- Cartagena - Barranquilla (Value approx US$760 million – http://bit.ly/14I6yEX )
- East Cundinamarca (Value approx US$680 million – http://bit.ly/TVjMvQ )
- Cali – Dagua (Value approx US$1.1 billion – http://bit.ly/VJsWIj )
- Honda – Girardot (Value approx US$775 million – http://bit.ly/11v74bk )
For more information, please contact:
PATRICIA BARRIGA RIVEROS
Agencia Nacional de Infraestructura
Tel: (57- 1) 3791720 Ext 1212 - pbarriga@ani.gov.co
FTA U.S. – Colombia, First 6 Months (June through November)
From June through November 2012:
- U.S. exports to Colombia totaled $8 billion, a 16% increase over the same period in 2011
- U.S. imports from Colombia totaled $11 billion, a modest 1.2% increase over the same period in 2011 (The majority of Colombian exports already benefited from ATPDEA preferences prior to the FTA)
For complete information please visit - http://bit.ly/VFjyL7
Infrastructure Opportunities in Panama and Colombia – U.S. Commercial Service Webinar
U.S. Commercial Service—Connecting you to global markets.
U.S. trade with Panama and Colombia is rapidly expanding. Each country is making significant investments in roads, ports and other infrastructure. The U.S. Commercial Service is hosting a trade mission to these markets in May, 2013. This webinar will provide details on the areas of growth that this mission targets.
Why Panama and Colombia?
In both Colombia and Panama the governments and private sector are investing more than $30 billion in infrastructure projects. Key sectors and/or products include:
• Building products and construction equipment
• Electrical power systems;
• Safety and security equipment and Airport supplies;
• Port equipment;
• Logistics and distribution solutions providers;
• Intelligent transportation systems (ITS),
• Airport and port design and construction.
Learn the benefits of Trade Agreements for Your Firm
U.S. Commercial Service staff will describe the advantages that the U.S.-Panama Trade Promotion Agreement and the U.S.-Colombia Free Trade Agreement offer American firms.
• U.S.-Panama Trade Promotion Agreement eliminates some 90% of tariffs and duties on U.S. exports to Panama.
• U.S.-Colombia Free Trade Agreement on May 15, 2012 provides immediate duty-free entry for 80% of U.S. consumer and industrial exports to Colombia, with remaining tariffs phased out over the next 10 years.
To find out more and Register for the Webinar:
http://export.gov/trademissions/colombiapanama/
Date: January 30, 2013
Time: 2:00 pm EDT, 1:00pm CDT, noon MDT,11:00 am PDT
Cost: Free of Charge
For more information:
Arica N Young
arica.young@trade.gov
Tel. 202-482-6219
Upcoming Road Concession Opportunities
The Colombian government will soon open four road concessions for bidding:
- Honda-Puerto Salgar-Girardot (313km; in the area between Bogota and Cali). A detailed description of this concession (in Spanish) is available here: http://www.ani.gov.co/CMS/media/file/Girardot%20Puerto%20Salgar%20Honda.pdf
- Mulaló-Loboguerrero-Cali (90km; part of the route from Cali to the Pacific coast; estimated cost of USD$556 million). A detailed description of this concession (in Spanish) is available here: http://www.ani.gov.co/CMS/media/file/Mulalo%20loboguerrero.pdf
- Caquesza-La Calera-Guasca (154km; on the eastern outskirts of Bogota; estimated cost of USD$361 million). A detailed description of this concession (in Spanish) is available here: http://www.ani.gov.co/CMS/media/file/Perimetral%20del%20Oriente%20de%20Cundinamarca.pdf
- Cartagena-Barranquilla-Malambo (152km; Caribbean coast; estimated cost of USD$444 million). A detailed description of this concession (in Spanish) is available here: http://www.ani.gov.co/CMS/media/file/Cartagena%20Barranquilla.pdf
The government of Bogota will open the prequalification stage in mid-January 2013. For the companies which qualify, the bidding process will be opened in March 2013.
For more information, please contact :
PATRICIA BARRIGA RIVEROS
Agencia Nacional de Infraestructura
Tel: (0571)3791720 Ext 1212 - pbarriga@ani.gov.co
