- 47.2 million
- $527.6 billion
- 4.3% growth
- 4.1% 5-year compound annual growth
- $11,189 per capita
- $16.8 billion
- 316.4 million
- $16.8 trillion
- 1.9% growth
- 1.2% 5-year compound annual growth
- $53,101 per capita
- $187.5 billion
The Sources of Economic Progress
Rule of Law
In Colombia there is a lot of corruption in government. Corruption occurs at all levels of government. The justice system is especially corrupt and gets extorted. The violence and drug trafficking dangers institutions.
In Colombia there is really high income inequality. The richer you are the lower the effective tax rate. Close to 85% of people in Colombia believe the income distribution is unfair and the government should fix it.
Starting a business doesn't take very long but the licence requirements are time consuming. The regulation of work hours is flexible and the pay for workers is moderate.
In 1990 Colombia opened up their economy to foreign trade. Colombia exports 14% of the worlds coffee. Fuels also contribute to a lot of their exports including petroleum and coal. Colombia also is known for drug trafficking.
Colombia's number one trader partner is the United States. Colombia sold an estimated 12 billion dollars of goods to the US in 2010. The United States faces some competition as other countries see opportunities in this growing market.
Colombia's inflation rate is only 0.5% higher than the United State's inflation rate. There isnt a lot of regulation on worker's hours or salaries. The government put tariffs making trade with other countries difficult.
Colombia: New Frontier - February 6, 2014
This video talks about the growth of Colombia's economy. It has advanced cities and a lot of untapped resources in under developed regions. The growth of the economy paused in 2008, but has continued to grow years later. It has great potential, but the government has put a lot of tariffs making trade difficult.
The Colombian government estimates that drug traffickers smuggle 5-10 billion dollars worth of cocaine and marijuana annually. Most of it is smuggled into the United States.