2012 Reports

Inward FDI in Colombia and its policy context, 2012

Betancourt, Miguel Posada

Colombia's current Government, in office since August 2010, has continued to pursue in 2010- 2011 the open policies established by the previous one. The country continues to receive increasing amounts of foreign direct investment (FDI) and has the potential to maintain this positive trend. Although there have been some modifications in the regulatory framework and uncertainty regarding sustainable investment, 2010 witnessed the continuation of positive FDI growth. In 2011, credit-rating agencies recognized the country's efforts and raised Colombia's debt rating up to investment grade, a rating that was lost eleven years ago. To facilitate the further internationalization of the Colombian economy, the Government is expanding the number of its investment and commercial treaties to a wider range of foreign economies. Among others, new bilateral investment treaties with India, China and the United Kingdom, as well as other initiatives, could have a positive impact on IFDI growth and its contribution to economic development.