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Country Forecast Colombia June 2018

Country Forecast Colombia June 2018

  • June 2018
  • ID: 2556042
  • Format: PDF
  • The Economist Intelligence Unit


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Policy towards private enterprise and competition

2018-19: Open policies for business prevail. Progress in efforts to cut red tape related to establishing new businesses

2020-22: Gradual adoption of commitments under the OECD membership fosters slow improvement in business competition and intellectual property rights, but enforcement will remain limited.

Policy towards foreign investment

2018-19: Open and flexible policies prevail. Incentives will attract investments to hydrocarbons, mining, road construction, power, agri-business and telecommunications. Bilateral investment treaties and free-trade agreements are enforced.

2020-22: International investment agreements add further protection for foreign investors.

Foreign trade and exchange controls

2018-19: Open foreign trade and exchange regime providing strong competitive advantages.

2020-22: Effective protection falls as trade liberalisation advances with several countries in the Americas, Asia and Europe. However, temporary anti-dumping rights cannot be ruled out.


2018-19: A new tax reform to seek a gradual reduction in effective corporate taxation and the creation of fiscal incentives to boost investment. Anti-evasion efforts redoubled.

2020-22: Distortions prevail and the tax regime continues to hinder the business environment. Evasion and contraband remain relatively high.


2018-19: The disruption of new technological platforms revolutionise banking services. Low interest rates and the gradual pick up of economic growth provide for a recovery of asset quality in the financial sector.

2020-22: A strong legal framework remains, but distortions will lead to the continuation of high financial transaction costs, high differentials between deposit and lending interest rates, and limited long-term financing for smaller firms.

The labour market

2018-19: rises as payroll costs decline. Government seeks to increase employment and training for vulnerable groups.

2020-22: OECD commitments lead to enhanced enforcement of worker rights. Shortage of skilled workers persists.


2018-19: Rising road density following increased spending in new roads. Airport services improve.

2020-22: Road density remains low by international standards and road transportation costs keep high. Utilisation of alternate means of transport continues to be low.

Technological readiness

2018-19: Internet penetration and mobile subscribers continue to grow. E-government services improve.

2020-22: Low research and development spending and poor university to business linkages hindering technological readiness.

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