Colombia Facts and Figures

Geographical and Organizational Profile

Colombia, located in the northwest corner of South America, is bordered by Venezuela to the east, Brazil to the southeast, Peru to the south, Ecuador to the west, and the Caribbean Sea to the north. Colombia's major cities include Bogotá, the capital; Medellín; and Cartagena. The country is rich in biodiversity, hosting various ecosystems, from the Amazon rainforest to the Andean mountains. Colombia joined the Organization of American States (OAS) in 1948 and the Community of Latin American and Caribbean States (CELAC) in 2011, emphasizing its commitment to regional cooperation. Notably, Colombia is the world's leading exporter of emeralds and is known for its coffee production, which significantly contributes to the economy.

Significant Historical and Political Events

Colombia has undergone several pivotal historical and political transformations. One of the most impactful events was the ""La Violencia"" (1948-1958), a period marked by civil conflict between the Liberal and Conservative parties, which claimed hundreds of thousands of lives and resulted in deep societal divisions. The subsequent emergence of drug cartels in the 1980s and 1990s, notably the Medellín and Cali cartels, further destabilized the country. The Colombian government implemented a series of reforms and peace negotiations, culminating in the 2016 peace agreement with the Revolutionary Armed Forces of Colombia (FARC). This landmark agreement aimed to end over five decades of armed conflict, leading to significant reductions in violence and fostering a climate of stability that has allowed for economic growth and foreign investment. Colombia's ongoing efforts in peacebuilding reflect its resilience and commitment to overcoming historical challenges.

Demographics Overview

Colombia recorded a population of 52,085,168 in 2023, growing at a measured pace of 0.4% annually. With a fertility rate of 1.7 children per woman in 2022—below replacement level—the country faces potential demographic transitions in coming decades. The population distribution shows a spatial density of 46 people per square kilometer (2021). A robust working-age population comprises 69.7% of residents (2022), while the median age of 32 years (2024 projection) positions Colombia with a demographically advantageous workforce. Health indicators reveal both progress and persistent challenges. Life expectancy stands at 74 years (2022), reflecting advancements in healthcare systems. However, the crude death rate of 7.4 per 1,000 persons and infant mortality at 10.6 per 1,000 live births (2022) suggest areas for continued improvement in healthcare access and quality. The country's urbanization rate, at 82.4% (2023), significantly influences policy considerations across housing, transportation, and public services.

Economic Overview

Colombia's economy demonstrates significant growth and complexity. In 2023, the gross domestic product (GDP) reached approximately $363.5 billion, ranking 41st globally. The GDP growth rate surged to 7.3%, recovering from an inflation rate of 11.7% in 2023, which decreased to 6.4% in 2024. The country also recorded exports worth $49.5 billion against imports totaling $62.8 billion, leading to a trade balance deficit of $13.3 billion. Employment conditions improved, with the unemployment rate declining from 10.5% in 2022 to 9.6% in 2023. Sectoral contributions reveal that agriculture represented 8.3% of GDP in 2022, while industry accounted for 26.9%, and services dominated with 54.6%. The manufacturing sector, contributing 11.5% of GDP, is vital for future growth. These indicators, combined with improved macroeconomic stability, underscore Colombia's emerging status as an attractive market for investment and business development, though careful market research in Colombia remains essential to navigate sector-specific opportunities and challenges.

Fiscal Overview

In 2022, Colombia received 0.6% of its Gross National Income (GNI) in Net Official Development Assistance (ODA). The net lending/borrowing balance showed a deficit of -6.17% of GDP in 2022, improving to -2.72% in 2023. General government debt of Colombia reached 63.63% of GDP in 2022. In contrast, central government debt was 27.33% of GDP in 2012 and increased to 47.47% in 2022.

Military Overview

Colombia maintains one of Latin America's most substantial military forces, with 297,000 personnel serving as of 2016—a remarkable 61.0% of the population. The country's investment in its armed forces has remained significant, though slightly fluctuating, with military expenditure representing 3.2% of GDP in 2021 before modestly declining to 3.1% in 2022.

Conclusion

Colombia's diverse economy, dynamic demographics, and evolving digital landscape present unique opportunities and challenges for businesses. Understanding consumer behavior and market trends is essential for effective strategy development. Doing market research in Colombia is crucial for gaining valuable insights into the local market. It can help organizations navigate the complexities of Colombia's political and military contexts, ensuring informed decision-making and competitive advantage.