What few people in the Australian business community realise is that Colombia has been experiencing an economic miracle in the past decade. The overall macro figures and overall key gauges paint a positive picture for the country’s long-term outlook. Between 2005 and 2016 the average annual growth rate was 4.3% and it outpaced its neighbours to become Latin America’s fourth largest economy. This is also reflected in the country’s capital markets which are valued at $93.49bn and moved to become the fourth biggest market in Latin America behind traditional heavyweights Brazil, Mexico and Chile.
Colombia’s credit rating has also seen strengthening during this time, with Standard & Poor including it in the BBB club.
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The main sectors driving growth in Colombia include manufacturing, agribusiness, mining, oil and gas and services. With Australia now on the wrong side of a mining-boom, many Australian companies are in ideal position to reinvest their know-how and operational capabilities in a country which invites and protects foreign investors in the sector.
With over 200 Australian companies already operating in Latin America, largely Chile and Brazil, many Australian companies already see the value of these markets. But with the political situation and economic conditions in Colombia continuing to improve, it shouldn’t surprise to see more Australians looking at Colombia as an ideal market to invest their money.