The Report: Colombia 2016

With oil accounting for roughly half of Colombia’s total exports, Latin America’s fourth-largest economy is feeling the effects of lower international oil prices. The negative impact of lower prices was nonetheless offset by positive performances by the retail, agriculture and financial services sectors, ensuring continued growth in 2015. Higher growth is expected in 2016 and beyond, driven in part by a raft of transport infrastructure investments, known as the fourth generation road concession programme. On the political front, the prospect of the signing of a peace accord between the government of Juan Manuel Santos Calderón and the leaders of the FARC promises to make 2016 a memorable year for Colombia. According to the National Planning Department, the peace settlement could bolster economic growth by up to 1.9 percentage points, lower security costs and signal the opening up of previously closed areas of the country to development.