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After experiencing decades of steady growth (average GDP growth exceeded 4% in the 1970-1998 period), Colombia experienced a recession in 1999 (the first full year of negative growth since 1929), and the recovery from that recession was long and painful. Colombia's economy suffers from weak domestic and foreign demand, austere government budgets, and serious internal armed conflicts. The IMF Economic Indicators published on September 21, 2005, forecast the Colombian GDP to reach US$112,300,000,000 in 2005. Inflation has been below 6% for 2004 and 2005, and is expected to remain below 5% during 2006. Colombia's main exports include manufactured goods (41.32% of exports), petroleum (28.28%), coal (13.17%), and coffee (6.25%). All imports, exports, and the general trade balance are in record levels, and the inflow of export dollars has resulted in substantial revaluation of the Colombian peso. The problems facing the country range from pension system problems to drug dealing to high unemployment. Several international financial institutions have praised the economic reforms introduced by current President Alvaro Uribe, which include measures designed to bring the public-sector deficit below 2.5% of gross domestic product (GDP). The government's economic policy and its controversial democratic security strategy have engendered a growing sense of confidence in the economy, and GDP growth in 2003 was among the highest in Latin America. |
Colombia Information: Inside
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