Investors are increasingly turning their attention to South America for new investment opportunities, and no Latin American country holds more promise for investors than Colombia. While many South American countries have the potential for investment, they remain shaky propositions, due to corrupt leaders, an unreliable workforce or widespread instability. However, Colombia has quickly transformed into a stable, growing economic force, which offers an attractive investment opportunity. Here are 10 reasons investors should consider Colombia.
- Stable Government – Colombia’s recently re-elected government has brought a new level of social and economic stability to the country. The people’s faith in the government is a positive indicator, allowing a stable foundation to continue to solidify and keep the country moving in the right direction. The government has made a considerable effort to attract and offer a level playing field for outside investors.
- Talented Workforce – The middle class population has nearly doubled during the last decade, meaning Colombia has higher numbers of educated and skilled workers, critical for businesses to be successful.
- Expanding Infrastructure – Colombia’s government has invested heavily in infrastructure in recent years, spending billions on new roads, which has created new opportunities for business growth.
- Key Economic Indicators – During the last decade, Colombia’s Gross Domestic Product (GDP) has been rapidly increasing, growing at three times the region’s average. It also has the highest predicted growth among Latin American countries. During 2014, it rose to over $375 billion.
- Low Inflation – Unlike many South American countries, Colombia has taken control of inflation, creating a new level of economic stability. In 2014, inflation sat at 3.66 percent, which was well below the Central Bank’s target for the country.
- Trading Power – As a member of the Pacific Alliance, along with Chile, Peru and Mexico, Colombia wields significant trading power in the region. These countries account for 47 percent of Foreign Direct Investment in Latin America and for 37 percent of GDP in the region.
- Low Unemployment – Colombia’s economic growth has resulted in a steadily declining unemployment rate, which sat at 7.7 percent in 2014, nearly a percentage point lower than the previous year.
- Investment Protection – Investors can take some peace of mind in knowing that Colombia is considered the top country in Latin America in terms of investor protection and is ranked 10th internationally.
- Import/Export Growth – Colombia has rapidly become a key importer and exporter on the international market. Exports have tripled during the last decade, reaching $58 million, while imports are at $56 million.
- Foreign Investment – Foreign investment in Colombia is steadily increasing. During the third quarter of 2014, foreign investment was just over $11 million.
With so many social, political and economic positives shaping a new Colombia, there has not been a better time for investors to seek opportunities in one of the fastest growing countries in South America. Those who take advantage of these opportunities now are likely to reap the benefits for decades to come.