Presentacin Colombia- ingls INVESTMENT ENVIRONMENT AND BUSINESS - PowerPoint PPT Presentation

Presentación Colombia- inglés INVESTMENT ENVIRONMENT AND BUSINESS OPPORTUNITIES IN COLOMBIA 2018 1

Colombia is the 28 th most populated country in the world and the 3 rd in Latin America 209.2 Population 2018* (million) 124.7 Latin American Economies 65.2 60.8 51.7 49.8 46.3 44.6 32.5 32.2 31.8 25.1 18.6 17.0 11.4 11.2 10.8 10.4 10.3 10.3 8.9 8.9 5.8 5.4 3.5 *Estimated,. PROCOLOMBIA.CO Source: IMF, 2018

Colombia is the 31th largest economy in the world and the 4th in Latin America Brazil 3,330 Mexico 2,498 Australia 1,296 Malaysia 989 Argentina 952 Philippines 951 Colombia 747 Vietnam 698 Belgium 545 GDP PPP 2018* (USD billion) Sweden 545 Latin American Economies Singapore 537 Switzerland 534 Hong Kong SAR 474 Chile 472 Peru 449 Norway 389 Israel 333 Denmark 296 195 New Zealand PROCOLOMBIA.CO *Projections. Source: IMF, 2018

Dynamic growth driven by its agriculture and financial services 2016 2017 4.9% 4.5% 4.4% 3.8% 3.4% 3.4% 2.6% 2.0% 2.0% 1.6% 1.8% 1.2% 1.1% 0.6% -0.1% Manufacturing Financial services Construction Commerce, Transport, Social services Agriculture Electricity, gas and Mining and Total GDP industries restaurants and warehousing and water supply Quarrying -0.7% hotels telecommunications -0.8% -1.0% -3.6% -7.0% Source: DANE – Ministry of Finance. PROCOLOMBIA.CO

Gross Domestic Product Estimated growth 2018 4.0% 3.0% 3.0% 2.5% 2.3% 1.9% 1.9% Venezuela Colombia, one of the top growing economies in 2018 among the largest Latin American countries Peru Colombia Argentina Mexico LATAM and the Caribbean Brazil Chile -6.0% Source: IMF, 2018. In january 2018, the IMF has updated the GDP growth rate of the following economies: Colombia, Mexico, Chile, Peru and Brazil. PROCOLOMBIA.CO

The Colombian economy is on the path of recovery and will expand by about 3-3.6% in 2018-2019 GDP constant prices (percent change, %) 6.6% 7% 6% 4.9% 5% 4.4% 4.0% 3.6% 4% 4.0% 3.1% 3.0% 3% 2.0% 1.7% 2% 1% 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: IMF, WEO 2017, October. Update projection for 2018 PROCOLOMBIA.CO in january 2018.

With a constant gross fixed capital formation, companies are the most willing to invest in fixed capital Gross fixed capital formation Investment sources 2015 (%)* (Investment as GDP %) 0.9% 0.1% 29.0% Companies 29.1% 27.7% 13.3% 27.2% Households 27.2% 27.0% 24.7% 24.2% Government 23.3% 24.0% 24.8% 21.8% 60.8% Banks 19.7% Non-profit organizations Gross fixed capital formation 2015 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 USD 52 billion Source: DANE PROCOLOMBIA.CO Procolombia ´ s estimates

Remarkable reduction in poverty rates and a rapidly growing middle class Percentage of people in poverty 2002 – 2016 Poverty 49.7% Middle Class Colombia has 31.1%* continuously 30.6% decreased its 29.9% 28% poverty levels 16.3% 2002 2003 2004 2005 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: Poverty: National Administrative Department of Statistics – DANE Middle class: The gained decade: the evolution of the middle class in Colombia between 2002 and 2011. Document CEDE # 50. Universidad de los Andes. And RADDAR for 2013 data. PROCOLOMBIA.CO *Middle class 2016: Estimates calculated by ProColombia

COLOMBIA, an investment grade country In July 2014, Moody ´ s was the last , rating agency in improving STANDARD M OODY S , FitchRatings Colombia ´ s rating due to two key & POOR S drivers: Long Term – Long Term – Long Term – Term Foreign Foreign Foreign 1. Positive growth forecast thanks currency currency currency to 4G infrastructure. Rating BBB- 2. A sound fiscal management Baa2 BBB that will continue in the future. In March 2017, Fitch Ratings* improved Colombia ´ s rating outlook: from Negative into Stable. Source: S&P Ratings; Dinero magazine, Colombian Treasury. PROCOLOMBIA.CO * Portafolio News Paper (Marh 10 th 2017)

Colombia is implementing the roadmap to become full member of the OECD Colombia was officially invited on OECD already approved 21 out of 23 Colombian may 2013 to initiate the process to committees become full member of the OECD Education • Agriculture • Territorial Development • Competition • Policy Statistics • “The OECD investment policy Information, Computer • Health • and Communications review examines Colombia's Consumer policy • Policy Financial markets achievements in developing an • Working Group on Bribery • Scientific and • open and transparent in International Business Technological Policy investment regime and its efforts Transactions Regulatory Policy • to reduce restrictions on Investment Corporate Fiscal Affairs • • international investment” -OECD Governance Fishing • PROCOLOMBIA.CO

Colombia is part of the top 30 destinations for FDI Top 30 host economies in 2016 (USD billion) Developed economies Developing and transition economies 391 254 21 134 108 92 62 59 48 44 38 34 33 29 28 27 27 22 20 19 14 14 13 12 12 11 11 11 11 10 10 Fuente: UNCTAD – Reporte de inversión mundial 2016 Source: UNCTAD – World Investment Report 2016 PROCOLOMBIA.CO

FDI has been largely driven by non-mining sectors over the last 2 years Top Investing countries in Colombia FDI Inflows. 2010 - 2017 2000 – 2017 Oil & Mining USD Million Other sectors United States • USD 33,856 million • 20.5% 16,210 16,168 15,039 14,648 14,518 United Kingdom 13,849 11,736 • USD 19,699 million 6,314 2,260 4,411 8,089 7,180 7,945 • 12.2% 3,152 6,430 Spain 11,589 9,854 10,107 • USD 15,832 million 8,584 4,918 8,121 7,468 7,095 • 9.6% 1,512 Switzerland 2010 2011 2012 2013 2014 2015 2016 2017 • USD 10,157 million • 6.2% Source: Balance of Payments - Banco de la Republica. Share of all countries with positive cumulative investment, The information includes reinvested profits or investments in the oil sector Note: the list of the top countries investing in Colombia does not include Panama.

Colombia is leading a sustainable growth in the region GDP growth vs. Consumption GDP growth vs. Investment 2012-2016 - (%) 2012-2016 - (%) 3% 5% 2% Total investment growth Consumption growth Colombia Perú 4% 1% Colombia Mexico 0% 3% -2% -1% 0% 1% 2% 3% 4% 5% -1% Chile Argentina Peru -2% 2% México -3% 1% Argentina -4% Brazil Chile Brasil -5% 0% -2% -1% 0% 1% 2% 3% 4% 5% -6% -7% -1% GDP growth GDP growth Source: ProColombia based on World Bank data and Canadean Travel and Tourism. Bubble sizing corresponds to the size of the economy. PROCOLOMBIA.CO

In 2017, receptive tourism grew 28,2% in comparison with 2016 International tourists arrival to Colombia 2012 – 2017 6,531,226 5,092,052 4,446,446 3 233 162 4,179,188 3,748,033 2 593 057 2 288 342 1 967 814 1 726 300 2 159 665 1 471 111 1 313 200 1 196 618 1 153 248 793 775 724 302 689 280 561 791 583 967 314 207 305 820 344 624 306 694 272 206 2013 2014 2015 2016 2017 Cruisers Colombians who are foreign residents Cross-border Non-resident foreigners PROCOLOMBIA.CO Source: Migration Colombia. Elaborated by ProColombia

Colombia, less than 6 hours away by airplane from the main cities in the americas 1,109 international direct frequencies per week. More than domestic frequencies per 5,600 week * This information takes into account the routes departing from international airports in Barranquilla, Bogotá, Cali, and Medellín. Source: Routes and Tariffs - Tools for the Colombian Exporter, processed by ProColombia.

Colombia has access to 60 countries and more than 1.5 billion consumers through its network of trade agreements Canada European Union United States Japan South Korea Caricom* Israel Mexico Cuba * Guatemala El Salvador Costa Rica Honduras Panama Venezuela Nicaragua* Singapore Ecuador Brazil Peru Bolivia • In force Paraguay In negotiation • Uruguay • Signed Chile Australia New Argentina Pacific • Zealand Alliance * Partial scope agreements (PSA) - - - Blue line shows Pacific Alliance´s member countries others than Colombia – (Chile, Peru and Mexico). - Source: Chamber of Commerce, Industry and Tourism, Colombia,2017 PROCOLOMBIA.CO

The airport in Bogota is among the top airports in the world According to Airhelp scores 2017, El Dorado International Airport is: #1 in Latin America #11 Worldwide PROCOLOMBIA.CO Sourcee: Airhelp Scores , Airport Worldwide Rankings 2017

Colombia is one of the countries with the greatest potential for expansion in agricultural land Colombia ranked 10 th worldwide and 1 st in Colombia, with multiple thermal floors, is able to • • Latin America in the food sustainability offer different agricultural products throughout the index. year . “Plan Colombia Siembra ” seeks to increase the The availability of water resources in • • agricultural production with 1,000,000 new Colombia is one of the highest in the hectares. world (FAO*) PROCOLOMBIA.CO Source: FAO, Food Sustainability Index, 2016