Rank of Colombia from the poorest countries is 87th and from the richest countries is 117 with gdp in atlas method measured in 2003 as 1,810 $. In other methods such as IMF,WB, and CIA measured in nominal method in 2007,2007, and 2008 is
$365.4 billion (2012 est.) (nominal)$500 billion (2012 est.) (PPP)
|GDP growth||4.3% (2012 est.)|
|GDP per capita|
$6,220 (2010 est.) (nominal)$10,200 (2011 est.) (PPP)
|GDP by sector||agriculture: 9.3%; industry: 38%;services: 52.7% (2010 est.)|
|Inflation (CPI)||3.2% (2012 est.)|
below poverty line
|Gini coefficient||58.5 (2011)|
|Labour force||23.08 million (2012 est.)|
|agriculture: 18%; industry: 18.9%; services: 63.1% (2009 est.)|
|Unemployment||10.3% (2012 est.)|
Colombia has a free market economy with major commercial and investment ties to the United States. The main farming activities of Colombia are petrochemical industry,coal,textile industry,construction,coffee, dairy, sugar, bananas, flowers, cotton and meat.
In 1990, the administration of President César Gaviria Trujillo (1990–94) initiated economic liberalism policies or "apertura economica" and this has continued since then, with tariff reductions, financial deregulation, privatization of state-owned enterprises, and adoption of a more liberal foreign exchange rate. Almost all sectors became open to foreign investment although agricultural products remained protected.
The original idea of his then Minister of Finance, Rudolf Homes, was that the country should import agricultural products in which it was not competitive, like maize, wheat, cotton and soybeans and export the ones in which it had an advantage, likefruits and flowers. In ten years, the sector lost 7,000 km² to imports, represented mostly in heavily subsidized agricultural products from the United States, as a result of this policy, with a critical impact on employment in rural areas. Still, this policy makes food cheaper for the average Colombian than it would be if agricultural trade were more restricted.
Until 1997, Colombia had enjoyed a fairly stable economy. The first five years of liberalization were characterized by high economic growth rates of between 4% and 5%. The Ernesto Samper administration (1994–98) emphasized social welfare policies which targeted Colombia's lower income population. However, these reforms led to higher government spending which increased the fiscal deficit and public sector debt, the financing of which required higher interest rates. An over-valued peso inherited from the previous administration was maintained.
The economy slowed, and by 1998 GDP growth was only 0.6%. In 1999, the country fell into its first recession since the Great Depression. The economy shrank by 4.5% with unemployment at over 20%. While unemployment remained at 20% in 2000, GDP growth recovered to 3.1%.
The administration of President Andrés Pastrana Arango, when it took office on 7 August 1998, faced an economy in crisis, with the difficult internal security situation and global economic turbulence additionally inhibiting confidence. As evidence of a serious recession became clear in 1999, the government took a number of steps. It engaged in a series of controlled devaluations of the peso, followed by a decision to let it float. Colombia also entered into an agreement with the International Monetary Fund which provided a $2.7 billion guarantee (extended funds facility), while committing the government to budget discipline and structural reforms.
By early 2000 there had been the beginning of an economic recovery, with the export sector leading the way, as it enjoyed the benefit of the more competitive exchange rate, as well as strong prices for petroleum, Colombia's leading export product. Prices of coffee, the other principal export product, have been more variable.
Economic growth reached 3.1% during 2000 and inflation was 9.0% although unemployment has yet to significantly improve. Colombia's international reserves have remained stable at around $8.35 billion, and Colombia has successfully remained in international capital markets. Colombia's total foreign debt at the end of 1999 was $34.5 billion with $14.7 billion in private sector and $19.8 billion in public sector debt. Major international credit rating organizations have dropped Colombian sovereign debt below investment grade, primarily as a result of large fiscal deficits, which current policies are seeking to close.
Several international financial institutions have praised the economic reforms introduced by former president Álvaro Uribe(elected 7 August 2002), which include measures designed to reduce the public-sector deficit below 2.5% of GDP in 2004. The government's economic policy and democratic security strategy have engendered a growing sense of confidence in the economy, particularly within the business sector, and GDP growth in 2003 was among the highest in Latin America, at over 4%. By 2007, GDP grew over 8%.
The government is supporting the development of ethanol production. By 2012, the tourism industry is small but growing rapidly
Colombia’s economic freedom score is 69.6, making its economy the 37th freest
in the 2013 Index. Its overall score is 1.6 points higher than last year, with improvements in half of the 10 economic freedoms including investment freedom, financial freedom, and the management of public spending. Colombia is ranked 5th out of 29 countries in the South and Central America/Caribbean region.
Colombia’s government has undertaken wide-ranging reforms to address structural weaknesses and improve competitiveness, notably in the context of various free trade agreements. Resilient economic growth has averaged over 4 percent during the past five years. Recent reforms have put greater emphasis on improving regulatory efficiency and enhancing financial-sector competitiveness. Management of public finance has been relatively prudent, and debt has been kept under control.
Despite progress, lingering institutional shortcomings undermine prospects for broad-based long-term economic development. Anti-corruption laws have had little impact, and the judicial system remains vulnerable to political interference. Other weaknesses include security issues that undercut the protection of property rights, infrastructure deficiencies, and complex tax and labor systems