Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Colombia's economy has high growth potential but cannot ditch oil, mining -IDB

Published 2023-01-26, 02:39 p/m
Updated 2023-01-26, 02:45 p/m
© Reuters. People walk through the Paloquemao market square, amid inflation reaching the highest figures in years, in Bogota, Colombia October 7, 2022. REUTERS/Luisa Gonzalez

BOGOTA (Reuters) - Colombia's economy has high growth potential, boosted by agriculture, tourism and interconnectivity between different economic sectors, but will continue to depend on its oil and mining industries, a high-ranking official of the Inter-American Development Bank said on Thursday.

The government of President Gustavo Petro wants to move Colombia away from its reliance on extractive industries, sectors which generate the largest income for Latin America's fourth-largest economy in exports, taxes and royalties.

Petro wants to boost agricultural production in the country of 50 million people to increase food output by giving land to poor farmers and use tourism to generate employment and bring in foreign currency.

"We're proposing a conversation that has to start today to be able to transition towards an economy that's much more diverse in the coming years," Tomas Bermudez, head of the IDB's Andes section, said at a press conference.

The transition will "have to be financed and leveraged with what Colombia produces today, which are hydrocarbons and mining," he said, adding that the new IDB report on transforming productivity in the Andean region did not propose ditching these industries.

The country's agricultural industry demonstrated its resilience during the COVID-19 pandemic in 2020 when it grew 2%, while Colombia's economy contracted 6.8% overall.

Colombia's services sector has the potential to bring an additional 1.7 million jobs to the country by 2050, of which 90,000 would include the modern services sector, such as computer programming, the IDB study found.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The global energy transition and process of decarbonization has potential to increase demand for metals including copper, nickel and graphite, the report said, adding that exploration projects for these metals could benefit Colombia.

Colombia's government forecasts economic growth of 8.2% in 2022, but will slow to 1.3% this year.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.