The questions

1. What is your view of the growth prospects for the international economy in the next 12 months and how will your home country be affected by this?

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2. What policies has your country recently adopted that will assist its economic development in the next few years?

3. What policies has your country recently adopted that will assist the development of its financial sector in the next few years?

4. How has the Argentine crisis affected both your country and the region? If the impact is minimal, please explain why.

5. Does the election of Luis Inacio Lula da Silva as Brazil’s president mark a new stage in Latin America’s democratic development? How much is the Venezuela crisis a step backwards?

6. What are the prospects for FDI flows in both your country and the region in the next years? What could help to improve them?

1. We expect the economic growth rate for Colombia´s trading partners to be around 1.2%. This is low because of Venezuela, but could have positive effects on non-traditional exports. It is estimated that an additional percentage point of worldwide economic growth generates a 1.2% increase in the value of Colombia’s non-traditional exports.

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2. The overriding objective is the recovery of economic growth and employment on a sustained basis. The government’s economic programme includes reform of tax, pensions and labour. Democratic security is also an indispensable pillar for growth. Investing in domestic security reduces uncertainty and stimulates private investment.

3. In December, Colombia’s congress approved the financial sector reform that modernises some aspects of the system and reduces some rigidities. It corrects financial sector weaknesses and introduces mechanisms to restore public confidence in financial organisations.

4. The perception of risk increased for investors in emerging countries. The crisis limited the access of the region to the international financial markets. Nevertheless, with the approval of the structural reforms and the will of the government to consolidate the fiscal adjustment, investors are recovering confidence in Colombia.

6. FDI flows in Colombia have been low in the past year but we believe the reforms and the democratic security programme launched by the government will create macroeconomic stability and restore confidence to attract and improve FDI.

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