Coffee bags from Colombia

Economic situation Great potential and major challenges

Colombia is an upper-middle-income country and has great economic potential, not least thanks to its abundance of resources (coal, natural gas, oil) and good basis for renewable energy generation (wind, solar, “green” hydrogen).

After a dramatic downturn during the COVID-19 pandemic in 2020, the economy saw a surprisingly strong recovery in 2021, growing at 10.6 per cent. In 2022, it grew by 7.6 per cent. However, the International Monetary Fund is projecting lower growth rates for the coming years.

One challenge that Colombia is faced with is the large budget deficit and the high level of public debt. Like many other countries, Colombia is currently facing high inflation, especially for food items, and a high level of unemployment.

Colombia's economy is largely a market system. The current Human Development Index (HDI (External link)) published by the United Nations Development Programme (UNDP) ranks Colombia 91st out of 193 countries.

As at: 25/06/2024