Foreign Direct Investment destined for Colombia this year is expected to fall below 2012 levels, according to a report issued by JP Morgan.
The report shows that FDI inflows are projected to reach $14.5 billion in 2013, falling 9% below a record level of $16 billion in inflows recorded in 2012.
This year, even though JP Morgan expects Colombia to generally see less FDI, it notes that portfolio inflows have generally increased. “Portfolio inflows increased significantly to 2.5% of GDP from 2.0% in 2012 and 2.4% in 2011, after a US$3.0 billion inflow in the first quarter,” said the report.
FACT SHEET: Colombia FDI statistics
In a time when international prices have caused the money fueling Colombia’s oil and mining sectors to slump, fund and investors’ monies are making up some of the slack.
The report explains that the increase in portfolio inflows comes from, “both higher private and public sector portfolio inflows in the period, particularly external bond issuance (both corporate and sovereign).”
But even though Colombia’s fiscal picture is rosy and investment is still relatively strong, some sectors are still struggling amidst the reverberations of the global crisis.
Multinational adhesives manufacturer Saint-Gobain’s Andean Executive Duber Pereira told Colombia Reports that the near extinction of trade with Venezuela coupled with weak demand from the Eurozone crisis has hurt exports more than the appreciation of Colombia’s currency against the dollar.
Sources
- Economic Research Global Data Watch: Colombia (JP Morgan)
- Interview with Duber Pereira (Saint-Gobain)
- JP Morgan prevé para 2013 que inversión extranjera llegue a US$14.500 millones (La Republica)
