Colombia: the business destination for foreign investors during and after covid-1920/04/2020
Although the Covid-19 crisis will greatly affect the different economies of the world, Colombia is expected to be one of the least hit by the current crisis. Despite the fact that the World Bank indicated that there is a negative forecast of -2.4% for the country for the remainder of 2020, this decrease in GDP growth positions Colombia as one of the economies that will be less affected by the restrictions imposed due to the virus.
Contrary to the projected situation for Colombia, the strongest economies in the world are expected to have a great impact after the covid-19 crisis. Among these, there is the United States with a contraction of 5.9% of GDP, Japan (-5.2%), the United Kingdom (6.5%) and Germany (-7.0%). The large number of people infected with the virus in these countries, will imply that their economies will take even longer to re-emerge after taking measures to counter the Cov-Sars-2019 virus. This will have negative implications as it will hinder the development of business and investments in its markets for an even longer period.
Even though the months ahead will probably be quite volatile and dynamic, Colombia has a strong and structure market. Therefore, it can be considered as a potential market for current investments; since, although the economy is contracting due to the different measures taken to confront covid-19, it will be less affected than other countries in Latin America and the world.
The pandemic’s economic challenges are unprecedented, for this reason, there is a need to rethink the social contracts and redefine the future of work and consumption where new technologies will start to rise. Colombia has been a leader in the FinTech industry in recent years and will be a market that will emerge after Covid-19 as one of the strongest; this represents an attractive business for foreign businessman to invest in order to acquire higher returns once the current crisis is solved.
On the other hand, it is a key moment to invest in those Colombian companies that over the years have been strong regionally, even if their values have been affected by the crisis; since, once the markets begin to reopen, their price will stabilize.
Agriculture is one of the possible industries in which foreign merchants could invest in Colombia. Not only is it considered one of the strongest in the country, but it is predicted to be the one that will most boost the national economy in the following years after the current world crisis. It should be remembered that, in recent years, this country has been considered as one of the great leaders in the production and export of medicinal cannabis; in addition to that, the government has issued different measures in favor of this industry. Although it is a growing market, thinking about investing in this sector together with Colombian entrepreneurs, could position foreign clients as major market influencers.
In conclusion, investing in Colombia right now can generate great profits for foreign investors. The foregoing, insofar as not only are the large economies going to have greater complications in their economic growth, but Colombia will reemerge as one of the least affected countries in the long term. Active buying and investing in this current moment bring with it the benefit of performing business with attractive exchange rates and a large profit margin in the medium and long term.