Colombia‘s GDP has grown steadily over the past six years, including growth rates of 11.0% and 7.3% over the past two years, respectively, according to FocusEconomics.
FocusEconomics also expects the economy to grow at an average rate of approximately 2.5% per year from 2023 to 2027.
Logistic Properties of the Americas believes Colombia has a track record of prudent macroeconomic and fiscal management that includes a focus on inflation management, a flexible exchange rate, and a «rules-based» fiscal framework designed to promote macroeconomic stability over time.
Colombia is the fourth largest economy in Latin America and has the third largest population in the region with more than 50 million people in 2021, according to the ITA.
Colombia’s GDP
Seven cities in this country, including Bogota, Medellin, Cali, Barranquilla, Cartagena, Pereira and Bucaramanga, have more than 1 million inhabitants each, making them attractive submarkets for the logistics industry.
Colombia has five major commercial centers, including Bogota, Medellin, Cali, Barranquilla, and Cartagena, which offer exporters access to multiple commercial centers.
According to the World Bank, Colombian imports and exports of goods accounted for approximately 23.9% and 16.3% of GDP, respectively, in 2021.
Relocation
Colombia has attracted more than $1 billion in investment from 60 companies since the Colombian government began promoting nearshoring in 2019, according to La Republica newspaper.
According to the Office of the U.S. Trade Representative, the U.S.-Colombia Trade Promotion Agreement (TPA) has improved the investment environment by removing tariffs and other barriers to U.S. exports, expanding trade, and promoting economic growth in both countries.
In 2012, when TPA went into effect, the International Trade Commission (USITC) estimated that the tariff reductions will expand U.S. goods exports by more than $1 billion.
The State Department noted that the United States was Colombia’s largest trading partner in 2022, accounting for about one-third of Colombia’s total trade, and Colombia was one of the top 10 suppliers of crude oil to the United States.
As of 2022, Colombia will be the fifth largest export market in the Western Hemisphere, according to the U.S. State Department.