Doing Business in Colombia 2024 from PwC Colombia

2022 marked a milestone for Latin America and the Caribbean, receiving more than USD 224.579 billion in Foreign Direct Investment (FDI), reflecting the dynamism and attractiveness of the region for investors from around the world. However, the outlook in 2023 presented significant challenges due to the intensification and convergence of various crises worldwide. Factors such as the conflict in Ukraine and the Middle East, the increase in macroeconomic indices such as inflation and interest rates, together with a series of uncertainties in the international financial system, generated a negative impact on the region's economic indicators.

In the specific case of Colombia, the flow of FDI experienced a notable contraction towards the end of October 2023, registering an inflow of USD 853 million, which represents a reduction of 12% compared to the same period of the previous year. This setback is framed within a context of economic slowdown, which has moderated the country's growth after the results obtained in 2021 and 2022. Colombian economic activity during 2023 was influenced by a decrease in domestic demand, political uncertainty and the implementation of high interest rates by the Central Bank as a strategy to contain inflation. These measures, although necessary, have contributed to cooling the country's economic growth during the last year.

On the other hand, in a positive turn, Colombia registered a slight improvement in the Corruption Perceptions Index (CPI) 2023, reaching 40 points out of a possible 100, according to Transparency International. This advance, the first in five years, took the country from 91st to 87th place globally, among 187 countries evaluated. To consolidate this positive trend in the future, it is important to implement a National Anti-Corruption Strategy and strengthen sanctions for the identification of acts of corruption. The fight against this scourge requires a systemic approach that includes preventive measures, greater access to public information, and the strengthening of the justice system and regulatory bodies.

Despite these challenges, FDI continues to be a fundamental pillar of Colombia's economic development. In a complex global scenario, the country faces the challenge of attracting and maintaining foreign investment that fosters sustainable growth. Colombia is committed to intensifying its efforts in attractive public policies and strengthening the business fabric to attract new investors, seeking not only to attract capital, but also to promote technology transfer, the creation of quality jobs and greater diversification of its economy. This approach aims to overcome current obstacles, as well as strengthen the foundations for a prosperous and resilient future.

Doing Business in Colombia 2024 aims to provide valuable information for individuals and companies interested in investing or consolidating their investments in the country. This updated edition is designed to be an indispensable tool, providing a comprehensive overview of the business environment in Colombia. It offers a detailed analysis of current conditions, covering the main economic indicators and summarizing vital regulatory aspects for companies and investors.