The economic model of Colombia is neoliberalism, an economic trend that consists of the practice of capitalist principles in which the State does not actively participate. In other words, the flow of the economy is carried freely by supply and demand, with private capital and for the sake of the country's economic growth.
Thanks to the implementation of this model, Colombia has experienced extremely important economic growth in recent years, currently positioning itself as the fourth largest economy in Latin America.
For the year 2016, the Gross Domestic Product of Colombia was weighted at 283 trillion US dollars, and in the last 5 years the Colombian economy has experienced an average growth of 3.68%.
The Colombian economy is based on free trade. For 2016, Colombia received more than 31.4 billion US dollars in exports, with oil being the main export item, with more than 45% of that country's exports.
In addition, the industrial park has shown substantial growth in the last decade: the textile industry, the assembly of automobiles and appliances, the field of construction and mining are in constant growth.
One of the most developed Colombian economic sectors during the last decade is undoubtedly tourism. The rate of travelers visiting Colombia increases by 12% annually.
Likewise, the inflationary rate in Colombia stands out for being one of the lowest rates in Latin America, and maintains a decreasing trend. In 2016, the annual variation in inflation closed at 5.7%, which induces a relatively stable behavior of the economy.
Colombia is widely recognized worldwide for its excellent credit history, and its high capacity to face internal problems, promoting policies that favor foreign direct investment at all times.
Business alliances with foreign investors have been on the rise, thanks to the confidence that Colombian policies inspire. In particular, the country that has invested the most capital in Colombia has been the United States.
Fiscal policy also plays a fundamental role in sustaining the Colombian economy, as a balancing agent for the Colombian government's finances. In turn, this affects the growth of the country's internal economic activity.
According to the National Tax and Customs Directorate (DIAN), the collection of taxes during the first quarter of 2017 increased by 7.4%, compared to the previous year, this represents the collection of more than 11 thousand US dollars.
Without a doubt, the peace agreement between the Colombian government and the revolutionary armed forces of Colombia (FARC), brought with it a hopeful scenario for the economy.
The decrease in differences with the armed pole, and the establishment of an environment of trust and participation, have made possible the expansion of the Colombian economy based on free competition, an increase in foreign investment and the growth of exports.
Data in 2018
- $ 330,974 billion nominal GDP
- $ 6,642 GDP per capita nominal.
- 3.2% inflation.
- Unemployment: 9.7% (May 2018).
- Labor force: 27,249,183 people (2019).
References
- Colombia (2017) The Heritage Foundation. Washington DC, USA. Recovered from: heritage.org
- Colombia Economic Outlook (2017). Barcelona, Spain. Recovered from: focus-economics.com
- Colombia's Economy (2011). Embassy of Colombia. Washington DC, USA. Recovered from: colombiaemb.org
- Definition of Neoliberalism (2014). Venemedia. Recovered from: conceptdefinition.de
- OECD Economic Outlook, Summary Colombia (2017). Organization for Economic Co-operation and Development. Paris France. Recovered from: oecd.org
- Wikipedia, The Free Encyclopedia (2017). Economy of Colombia. Recovered from: es.wikipedia.org