Tuesday, 7 July 2020

Peace with FARC would boost Colombia’s GDP growth and triple foreign investment: Govt

Colombia Reports

peace_hands

A peace deal with FARC rebels could triple foreign direct investment in Colombia and boost its potential economic growth from 4% to 5.9%, according to the government’s planning department DNP.

According to a study conducted by the DNP, successful peace talks would not just result in a major FDI hike, but also boost consumer confidence and domestic consumption.

While increased consumer confidence would increase domestic consumption, foreign investment would improve the country’s industries to become more competitive on the global market, according to the study.

- paying the bills -

Annual foreign direct investment could blow out to $36 billion from $12 billion currently, the report said.

As a result, Colombia’s potential annual economic growth could increase to as much as 5.9% annually instead of the 4% it is now, said the DNP.

[youtube https://www.youtube.com/watch?v=WzqlP4Wxiwo]

The report based its conclusions on comparing 36 countries that have overcome armed conflict. In 31 of the studied countries, peace was reached through a negotiation process like the one taking place with the FARC, while five reached peace through a military victory.

The DNP got its data  to calculate the economic peace divident from the Kroc Institute at the US Notre Dame University and the Swedish Uppsala University.

The administration of President Juan Manuel Santos has been negotiating peace with the FARC since November 2012 and has vowed to successfully finalize these talks before March 23.

- paying the bills -

Simultaneous to the talks, the government has been seeking foreign aid to finance a peace process that would include the disarmament, demobilization and reintegration of some 20,000 FARC fighters and logistical supporters.

However, the Colombian economy has been hit over the last year by a decline in oil revenue as global prices slump. The government expects growth this year to slow to 3.3% from 4.6% last year.

The post Peace with FARC would boost Colombia’s GDP growth and triple foreign investment: Govt appeared first on .

Colombia Reports

Related Articles

Controversy in Colombia over the arrival of the US military

The arrival of US troops in Colombia has always caused controversy...

Colombia Investigates Its Armed Forces for Venezuelan Espionage

The Venezuelan dictatorship has caused a geopolitical mess in recent weeks...

MOST READ

Let's Keep This Going!

To be updated with all the latest news and information about Colombia and Latin America.

Colombia Reports

Add to Collection

No Collections

Here you'll find all collections you've created before.