Colombia's Economy

Economy & Politics

By Daniel T. Johnson

Colombia’s economy has for decades been among the best in Latin America, thanks in large part to steady agricultural production, a healthy textile industry and a wealth of natural resources. In particular, Colombia is among the world leaders in the production of coffee, petroleum, textiles and flowers, and is South America's leading producer of gold, nickel, and coal.

These and other growing sectors have in recent years helped Colombia’s economy grow by an average of 6.8 percent a year, some two percentage points higher than the Latin America average. President Álvaro Uribe’s recent efforts to increase security in Colombia have certainly helped, going a long way in rebuilding confianza, or trust, in the country’s economy. As killings and abductions have declined, foreign investment from multinational corporations has soared, flooding Colombia’s economy with money and industries geared toward future growth.

Other signs of economic strength abound. Declining inflation and unemployment have improved the country’s quality of life, tourism to Colombia has nearly tripled in the last five years, and real estate is once again a stable investment. Taken together, it’s not surprising to see once-dangerous or impoverished neighborhoods and districts beginning to turn around.

Yet despite its relative strength in the region, Colombia is still largely dependent on the U.S. In the last five years alone, Colombia has received some $5 billion in U.S. aid, more than all other countries in the world except Iraq, Egypt, Israel and Afghanistan.

Economic Stats:

Unemployment: 11.1% (as of 2006)

Inflation Rate: 4.6% (as of 2006)

GDP Per Capita: $3,246 (as of 2006)

Population below poverty line: 14.7% (as of 2005)

Public Debt: 45.3% of GDP

Chief Agricultural Exports: Colombian coffee, cut flowers, bananas, rice, tobacco, corn, sugarcane, cocoa beans, oilseed, vegetables; forest products; shrimp

Export Commodities: petroleum, coffee, coal, nickel, emeralds, apparel, bananas, cut flowers.

Main Industries: textiles, food processing, oil, clothing and footwear, beverages, chemicals, cement; gold, coal, emeralds