COLOMBIA A Strategic Ally for International Business Owners December 2011
OUTLINE Who We Are Latin America, the world's source of development "The world is talking about Colombia" Why invest in Colombia? Legal Framework, benefits and support to invest in Colombia
WHO WE ARE
Who We Are Entity in charge of Promoting International Tourism, Direct Foreign Investment, and Exports TOURISM INVESTMENT EXPORTS
Proexport supports foreign investors � Information tailored to your needs. � Contacts with the public and private sectors. � Itinerary planning and assistance for travel to Colombia. � Assistance during the installation process and monitoring of established investors. � All services are free of charge and the information provided during the process is kept confidential. www.proexport.com.co
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ECONOMIC TRENDS IN THE WORLD AND IN LATIN AMERICA
The largest economies in a crisis …where the emerging economies are becoming their strategic allies
Latin America is the second-highest growing region in the Short-Term (ST) and third-highest in the Long-Term (LT) (LT): Long-Term: Nominal GDP Variation 2000 - 2010 (ST): Short-Term: Nominal GDP Variation 2009 - 2010 LT ST LT ST +470% +21% +87% +0% LT ST LT ST +51% +5% +112% +16% LT ST +126% +20% LT ST +148% +20% Source: EIU North America Middle East and Sub-Saharan Africa Western Europe Russian Federation Latin America Asia and Australasia
Latin America will continue to increase its nominal GDP, always ranking higher than Russia, the Middle East and sub-Saharan Africa. NOMINAL GDP (US $ Billions) 6000 2000 – 2014* 5000 +126% 4000 3000 2000 1000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Proy. Proy. Proy. Proy. 2011 2012 2013 2014 LATINAMERICA MIDDLE EAST AND SUB-SAHARAN AFRICA RUSSIAN FEDERATION Source: EIU
Colombia, with higher growth than Latin America and the world, playing a positive role in the region's performance.
Colombia is the third largest contributor to growth in Latin America. Although Argentina represents a larger share of Latin America's GDP, its growth was lower than Colombia's 23% Countries' contribution to the growth of the GDP in Latin America (%) Share of the GDP 2000 – 2010 (+126%) 5% LATINAMERICA 126% 7% Variation 1% 2000 - 2010 3% BRAZIL 74% +224% 47% MEXICO +54% 18% COLOMBIA +189% 10% +170% CHILE 7% 8% +107% VENEZUELA 6% 5% +188% PERU 5% +30% ARGENTINA 4% +264% ECUADOR 2% Source: EIU
Colombia's historic GDP trends are greater than Chile and Peru and were ranked higher than Venezuela in 2009 US $ Billions South America's GDP between 2000 and 400,0 2012* 350,0 Steady performance is 300,0 Chile expected in the country's growth compared to the rest 250,0 Colombia of the region 200,0 Peru 150,0 Venezuela 100,0 50,0 ,0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011p 2012p Source: EIU - June 2011 P: Forecasts
Performance higher than Latin America and the World is expected over the next few years. Growth of Colombia's GDP vs. Latin America 2001 - 2010 (%) 08 06 04 02 00 -02 -04 Colombian growth Latinamerican growth World growth Source: ANDI (National Business Association of Colombia), EIU
Colombia with the highest third quarter growth since 2005 “”Mining and household consumption were the two drivers of economic growth” Colombian Finance Minister: Juan Carlos Echeverry GDP Variation (%) 2005 – III TRIM 2011 7,7 7,6 7,7 7,6 7,5 6,3 6,1 6,1 5,7 5,7 5,2 5,5 5,4 5,1 4,7 5,1 4,7 4,0 4,0 3,3 3,6 3,3 3,0 1,0 0,8 1,0 0,1 I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III 2005 2006 2007 2008 2009 2010 2011 Fuente: DANE
Colombian economy: larger than that of Chile, Ireland, Malaysia, Egypt, Singapore and New Zealand, among others Nominal GDP US $ Billions - 2010 289 242 238 229 224 223 218 214 207 203 196 154 140 138 130 104 92 36 Source: EIU (Economist Intelligence Unit) (10 Oct 20)
Colombia: 28th strongest economy in the world adjusted to PPP and one of the largest non-OECD economies GDP (PPP) US $ Billions - 2010 437 417 383 352 348 342 327 277 277 259 259 229 220 188 173 121 Note: GDP adjusted to prices at purchasing power parity (PPP) Source: EIU (Economist Intelligence Unit) (October 10, 2011)
The twenty-fourth largest population in the world; The second most numerous Spanish-speaking population Population Millions of People - 2010* 112,469 46,927 45,92 40,52 38,206 34,033 29,96 28,631 22,2 17,09 11,27 10,637 10,63 9,4119 8,417 7,8665 7,6247 5,077 4,9181 4,388 Source: EIU (Economist I ntelligence Unit) *Forecast (October 10, 2011)
Colombia is an easy-access, high-growth market Forecast of average GDP growth 2010 - 2050, HSBC 0 Reino Unido USA Tailandia Corea del S. 20 Business Environment, World Bank Malasia México 40 COLOMBIA 60 Turkey Poland 80 China ,00% 1,00% 2,00% 3,00% 4,00% 5,00% 6,00% Egypt 100 Argentina 120 Russia Brasil India 140 160 180 200 Sources: HSBC: World in 2050. World Bank: Doing Business Report 2011
THAT’S WHY THE WORLD IS TALKING ABOUT COLOMBIA...
"By the end of the year, the region's figures may set a new record" - CEPAL Beyond the BRICs: New Interesting Points +91.4% in FDI of Investment 1st Sem 2010 vs 1st Sem 2011 Colombia “Brazil and Colombia are at the top of the list Colombia is a potential point of investment: of the countries that have received the most funds…” “It is considered the friendliest country for business in Latin America according to the World Bank and, “Current investment flows confirm the strong after many delays, it is about to sign a free trade performance of the economies in Latin America agreement with the US” and the Caribbean, despite the environment of economic turbulence” “Security is no longer an issue after the actions Alicia Bárcena – Executive Secretary of ECLAC taken by the government; it seems they are winning the fight against crime, and its economic and demographic growth rates for the next few years are expected to be among the highest in the region" Alex Duffy, Fidelity´s Latin America Fund Source: Portafolio, October 26, 2011 The Independent, April 30, 2011
“Colombia, one of the stars of Latin America…” IEE (Institute of Economic Studies) - Spain “Colombia will be better off than the rest “Colombia is the second most attractive of the countries in the region in the country for investment in Latin America event of another global recession” in the next 3 years.” Rodrigo Chavez – Director, Latin America and Caribbean If you were to invest in a Latin American country in the next 3 years, where would you invest? “Colombia has become quite an attractive 68% destination for investment…Increased 38% 25% 25% 18% security in Colombia has been reflected in the growth of the GDP per capita since 1 2 3 4 4 2002.” Colombia Chile Brazil Mexico Peru
Colombia has improved its Confidence Index, ranking higher than the Global average. 8 Dec, 2011 – “Colombia adheres to the OECD Declaration on International Investment. As an adherent to the Declaration, Colombia commits to treating foreign investors in the same way as domestic investors and to promoting responsible business conduct.” Business Confidence Index Colombian companies are beating the international trend. (Points) 130 125 “The report has concluded that although the global outlook has 119 114 clearly regressed almost everywhere in comparison with six months ago, Colombia has broken this trend.” April 2011 October 2011 Ana Maria Castro, Regus' Director of Northern Latin America Colombia Global Source: oecd.org, Regus, Press Release, October 5/ 2011
In terms of Globalization, Colombia is in 3rd place in Latin America, beating world economies such as Japan, Brazil, Russia and Indonesia Globalization Index, 2010 4,32 3,81 3,61 3,58 3,57 3,43 3,37 3,28 3,18 3,13 3,04 3,000 2,96 2,85 Source: Ernst and Young – The Globalization Index 2010, Ranking among 60 countries.
Colombia: third "friendliest" country to do business in Latin America and the biggest reformer in the region Colombia remains the top reformer in the region in recent years. Change in Doing Business Ranking, 2007-2012* (Variation in the number of positions) World World Country Ranking Ranking 2012 2011 Chile 39 41 Peru 41 39 Colombia 42 47 Mexico 53 54 Panama 61 63 Argentina 113 114 Costa Rica 121 121 Brazil 126 120 Ecuador 130 131 Venezuela 177 175 Source: Doing Business 2012 World Bank Report *Positive numbers indicate improvements in business environment
Three of the top risk rating agencies have rated Colombia "Investment Grade" The three agencies agree on the country's positive economic and financial situation , highlighting: � Its ability to deal with external shocks � Its historic fulfillment of obligations � An increase in its macroeconomic credibility � A visible improvement in security conditions May 31, 2011
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