Colombia | Investing in Colombia's future

Since the 2023 growth results were released, there has been a discussion about the fall in investment. The investment rate in recent years has been decreasing, and compared to other countries there are negative gaps. Measures must be taken now to increase the country's growth capacity.

Key points

• Key points:
• On average, the country's fixed investment rate between 2005 and 2019 stood at 21.2% of GDP and its maximum level was in 2014, when it reached 23.4%. In contrast to these values, in the last two years, the rate was 19.6% in 2022 and 17.8% in 2023.
• The Arab World and Latin America have the lowest investment rates (at 20.4% of GDP). On the contrary, regions such as East Asia and Pacific (at 35.4%) or South Asia (at 28.2%) lead the figures, with high growth results that demonstrate the importance of investment.
• Considering the countries by income level, Colombia being a middle-income country, low-income countries (18.8%) have the lowest investment rate. However, middle-income countries invest more than 30% of their GDP.
• Private and public savings must be increased and investment plans in logistics and social infrastructure must be accelerated by national and territorial governments. And it must be done now.

Authors

Geographies

Topics

Tags