Foreign investment in Colombia fell by 21% this year on par with a regional trend, according to a report.
Globally falling energy prices, China’s economic slowdown and the unstable political situation of many countries across the world reduced foreign investment in Latin American countries, including Colombia which fell by 21% during the first half of 2015.
According to the most recent report by the Economic Commission for Latin America and the Caribbean (ECLAC), Colombia is the third worst hit country in Latin America by the drop in Foreign Direct Investment (FDI) during the first semester of this year. This year $6.8 billion of foreign money was invested in Colombia compared to $8.8 billion in the same period during the previous year.
Despite the investment drop, CELAC admitted in its report that Colombia has seen a positive trend in the diversification of investments away from fossil fuels.
According to Carlos Martínez Becerra, Dean of Economics of the University Antonio Nariño, “the country has been opening doors in trade and tourism, forced by the situation of the world market.”
Although almost all Latin American countries suffered a reduction in FDI, the largest fall was Brazil’s (- 36%), according to ECLAC this is because the country focused on the domestic market this year.
Uruguay’s FDI fell by 25% and Ecuador’s by 15% adding these countries to the list of the biggest losers in this first half of the year.
However, El Salvador and Argentina’s FDI increased by 888% and 463% respectively.
The Foreign Direct Investment (FDI) of Latin America and the Caribbean in other countries decreased for the second consecutive year, standing at $29,162 million in 2015, which represents a decline of 12% over the previous year.
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