2024-09-24 22:53:10
The outlook is a cause for concern for experts and economic authorities, as investment figures have failed to recover since March.
Foreign direct investment (FDI) in Colombia registered its fifth consecutive month of decline in August 2024, according to preliminary data from the Bank of the Republic. Between January and August, accumulated investment reached US$7.878 billion, which represents a decrease of 16% compared to the same period in 2023, when US$9.376 billion was reached.
In August, FDI in Colombia stood at US$659 million, 22% less than the US$845 million reported in the same month of the previous year. This decrease reflects the downward trend affecting several sectors, with special emphasis on oil and mining, key sectors in the country’s economy.
Oil and mining
The Bank of the Republic highlighted that oil and mining continue to lead the way in attracting foreign investment, accounting for 70% of the total registered until August, equivalent to almost US$6 billion. The other sectors of the economy, as a whole, received the remaining US$2.28 billion, which shows the country’s dependence on the extractive sectors.
You can read: Colombia exported US$259 million in confectionery between January and July
This situation is a cause for concern for experts and economic authorities, as investment figures have failed to recover since March, the month in which the downward trend began. The only months in which investment levels for 2023 were exceeded were January and February, before the sustained decline began.
August, in particular, marked a negative milestone, recording the lowest foreign investment figure since President Gustavo Petro took office. A level below US$700 million had not been recorded in a single month since March 2022. This situation raises concerns about the country’s attractiveness to international investors in a context marked by economic and political uncertainty.
It is important to build trust
Former Finance Minister José Manuel Restrepo referred to this situation through his account on the social network X, stressing the importance of generating confidence in international markets. “Confidence, confidence, confidence to grow must be the way. When there is social, economic and political uncertainty, this is the result,” he said.
With five consecutive months of declines, foreign direct investment in Colombia faces a challenging scenario, in which the stabilization of productive sectors and the reduction of uncertainty will be key to reversing the negative trend. Authorities and experts agree that a joint effort will be necessary to once again attract the foreign capital that the country’s economy so badly needs.
You can read: Gas imports could increase service costs