Post by account_disabled on Mar 10, 2024 3:45:12 GMT
In June 2018, Colombian voters made Iván Duque, an ambitious populist conservative, their next president, winning 54 percent of the vote.
The future of the country, and its attractiveness for global business investment, will be affected by the new president's administration as the country approaches a critical opportunity to grow as both a South American and global economic leader.
With his majority victory, Iván Duque is charting a pro-business and pro-trade path.
On the heels of Duque's predecessor's peace agreement with the FARC and now with a business-friendly platform, Colombia enjoys an optimistic economic outlook and is attracting global attention for the high investment and business potential in the country.
At his inauguration, Duque promised to "govern Colombia with a spirit of construction, never of destruction."
As the second most populous nation in South America, the third largest economy and the first member of the OECD, Colombia has potential as a country with opportunities for investment and global business expansion, if the president manages to overcome a series of challenges. internal.
The result of this condition is essential for Colombia and to determine the future commercial expansion in the country.
Colombia's path forward
Duque promised to transform the country's economic model and address social and economic inequality.
The president's pro-business policies include tax cuts, reduction of bureaucracy, support for the coal and oil industries, and promises to bolster the economy with a US$324 billion injection of science and technology.
Specific tax reforms include a reduction in the tax burden for companies and the simplification of administrative processes, which aim to provoke the growth of private companies and global companies to invest and establish themselves in the country.
As a former technocrat, the president believes that technology and science are key elements in economic growth.
Specifically, a five-year income tax exemption has been implemented for emerging science and technology companies.
A third component is to attract foreign investment to industrialize Colombia's rich geography, rich in resources from agriculture to oil.
Colombia Emerging global market
Five months after the investiture: challenges arise
Politicians learn very quickly that winning may be easy, but governing is very difficult.
Duque has faced notable Ecuador Mobile Number List obstacles: the lack of political support for his economic reforms, the resurgence of domestic guerrilla forces, welcoming the massive influx of immigrants fleeing Venezuela, drug trafficking and the decline of public opinion in the surveys.
Tax reform has been met with stiff resistance in Congress, as the president's conservative Democratic Center party has only a fifth of the seats and must rally other political parties to gain support.
Duque and his party were forced to dilute their ambitious fiscal plan that would reduce the value added tax from 19 to 17 percent.
According to the Financial Times , this plan was welcomed by economists to reduce the fiscal deficit and increase extra revenue, up to 1.1 percent of gross domestic product.
A fact that further complicates economic reform efforts is the fluctuation in oil prices, since Colombia is one of the main crude oil exporters in the world.
Approximately 45% of Colombian exports are oil.
Future perspective
Despite the challenges, and less than half a year into his presidency, Duque has had time to verify the optimism shown by his government's victory in the economic field.
Eliminating and containing Colombia's aforementioned challenges will be key to achieving the country's high growth potential.
If Duque can update his government's economic, social and political visions, he could mark a new renaissance for Colombia.
It won't be easy, but given Colombia's membership in the OECD and NATO, as well as successfully implementing pro-growth economic reforms, there is still reason for optimism and significant business investment and global expansion opportunities despite these early obstacles.