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Colombia vs. Brazil

Economy

ColombiaBrazil
Economy - overview

Colombia heavily depends on energy and mining exports, making it vulnerable to fluctuations in commodity prices. Colombia is Latin America's fourth largest oil producer and the world's fourth largest coal producer, third largest coffee exporter, and second largest cut flowers exporter. Colombia's economic development is hampered by inadequate infrastructure, poverty, narcotrafficking, and an uncertain security situation, in addition to dependence on primary commodities (goods that have little value-added from processing or labor inputs).

Colombia's economy slowed in 2017 because of falling world market prices for oil and lower domestic oil production due to insurgent attacks on pipeline infrastructure. Although real GDP growth averaged 4.7% during the past decade, it fell to an estimated 1.8% in 2017. Declining oil prices also have contributed to reduced government revenues. In 2016, oil revenue dropped below 4% of the federal budget and likely remained below 4% in 2017. A Western credit rating agency in December 2017 downgraded Colombia's sovereign credit rating to BBB-, because of weaker-than-expected growth and increasing external debt. Colombia has struggled to address local referendums against foreign investment, which have slowed its expansion, especially in the oil and mining sectors. Colombia's FDI declined by 3% to $10.2 billion between January and September 2017.

Colombia has signed or is negotiating Free Trade Agreements (FTA) with more than a dozen countries; the US-Colombia FTA went into effect in May 2012. Colombia is a founding member of the Pacific Alliance-a regional trade block formed in 2012 by Chile, Colombia, Mexico, and Peru to promote regional trade and economic integration. The Colombian government took steps in 2017 to address several bilateral trade irritants with the US, including those on truck scrappage, distilled spirits, pharmaceuticals, ethanol imports, and labor rights. Colombia hopes to accede to the Organization for Economic Cooperation and Development.

Brazil is the eighth-largest economy in the world, but is recovering from a recession in 2015 and 2016 that ranks as the worst in the country's history. In 2017, Brazil`s GDP grew 1%, inflation fell to historic lows of 2.9%, and the Central Bank lowered benchmark interest rates from 13.75% in 2016 to 7%.

The economy has been negatively affected by multiple corruption scandals involving private companies and government officials, including the impeachment and conviction of Former President Dilma ROUSSEFF in August 2016. Sanctions against the firms involved - some of the largest in Brazil - have limited their business opportunities, producing a ripple effect on associated businesses and contractors but creating opportunities for foreign companies to step into what had been a closed market.

The succeeding TEMER administration has implemented a series of fiscal and structural reforms to restore credibility to government finances. Congress approved legislation in December 2016 to cap public spending. Government spending growth had pushed public debt to 73.7% of GDP at the end of 2017, up from over 50% in 2012. The government also boosted infrastructure projects, such as oil and natural gas auctions, in part to raise revenues. Other economic reforms, proposed in 2016, aim to reduce barriers to foreign investment, and to improve labor conditions. Policies to strengthen Brazil's workforce and industrial sector, such as local content requirements, have boosted employment, but at the expense of investment.

Brazil is a member of the Common Market of the South (Mercosur), a trade bloc that includes Argentina, Paraguay and Uruguay - Venezuela's membership in the organization was suspended In August 2017. After the Asian and Russian financial crises, Mercosur adopted a protectionist stance to guard against exposure to volatile foreign markets and it currently is negotiating Free Trade Agreements with the European Union and Canada.

GDP (purchasing power parity)$741.099 billion (2019 est.)

$717.7 billion (2018 est.)

$700.091 billion (2017 est.)

note: data are in 2010 dollars
$3,092,216,000,000 (2019 est.)

$3,057,465,000,000 (2018 est.)

$3,017,715,000,000 (2017 est.)

note: data are in 2010 dollars
GDP - real growth rate3.26% (2019 est.)

2.51% (2018 est.)

1.36% (2017 est.)
1.13% (2019 est.)

1.2% (2018 est.)

1.62% (2017 est.)
GDP - per capita (PPP)$14,722 (2019 est.)

$14,452 (2018 est.)

$14,314 (2017 est.)

note: data are in 2010 dollars
$14,652 (2019 est.)

$14,596 (2018 est.)

$14,520 (2017 est.)

note: data are in 2010 dollars
GDP - composition by sectoragriculture: 7.2% (2017 est.)

industry: 30.8% (2017 est.)

services: 62.1% (2017 est.)
agriculture: 6.6% (2017 est.)

industry: 20.7% (2017 est.)

services: 72.7% (2017 est.)
Population below poverty line35.7% (2019 est.)4.2% (2016 est.)

note: approximately 4% of the population are below the "extreme" poverty line
Household income or consumption by percentage sharelowest 10%: 1.2%

highest 10%: 39.6% (2015 est.)
lowest 10%: 0.8%

highest 10%: 43.4% (2016 est.)
Inflation rate (consumer prices)3.5% (2019 est.)

3.2% (2018 est.)

4.3% (2017 est.)
3.7% (2019 est.)

3.6% (2018 est.)

3.4% (2017 est.)
Labor force19.309 million (2020 est.)86.621 million (2020 est.)
Labor force - by occupationagriculture: 17%

industry: 21%

services: 62% (2011 est.)
agriculture: 9.4%

industry: 32.1%

services: 58.5% (2017 est.)
Unemployment rate10.5% (2019 est.)

9.68% (2018 est.)
11.93% (2019 est.)

12.26% (2018 est.)
Distribution of family income - Gini index50.4 (2018 est.)

53.5 (2014)
53.9 (2018 est.)

54 (2004)
Budgetrevenues: 83.35 billion (2017 est.)

expenditures: 91.73 billion (2017 est.)
revenues: 733.7 billion (2017 est.)

expenditures: 756.3 billion (2017 est.)
Industriestextiles, food processing, oil, clothing and footwear, beverages, chemicals, cement; gold, coal, emeraldstextiles, shoes, chemicals, cement, lumber, iron ore, tin, steel, aircraft, motor vehicles and parts, other machinery and equipment
Industrial production growth rate-2.2% (2017 est.)0% (2017 est.)
Agriculture - productssugar cane, milk, oil palm fruit, potatoes, rice, bananas, cassava leaves, plantains, poultry, maizesugar cane, soybeans, maize, milk, cassava, oranges, poultry, rice, beef, cotton
Exports$61.697 billion (2019 est.)

$60.151 billion (2018 est.)

$59.644 billion (2017 est.)
$291.452 billion (2019 est.)

$298.565 billion (2018 est.)

$286.935 billion (2017 est.)
Exports - commoditiescrude petroleum, coal, refined petroleum, coffee, gold (2019)soybeans, crude petroleum, iron, corn, wood pulp products (2019)
Exports - partnersUnited States 31%, China 11%, Panama 6%, Ecuador 5% (2019)China 28%, United States 13% (2019)
Imports$87.072 billion (2019 est.)

$80.546 billion (2018 est.)

$76.136 billion (2017 est.)
$271.257 billion (2019 est.)

$268.237 billion (2018 est.)

$248.961 billion (2017 est.)
Imports - commoditiesrefined petroleum, cars, broadcasting equipment, packaged medicines, corn (2019)refined petroleum, vehicle parts, crude petroleum, integrated circuits, pesticides (2019)
Imports - partnersUnited States 27%, China 20%, Mexico 7%, Brazil 6% (2019)China 21%, United States 18%, Germany 6%, Argentina 6% (2019)
Debt - external$135.644 billion (2019 est.)

$128.238 billion (2018 est.)
$681.336 billion (2019 est.)

$660.693 billion (2018 est.)
Exchange ratesColombian pesos (COP) per US dollar -

3,457.93 (2020 est.)

3,416.5 (2019 est.)

3,147.43 (2018 est.)

2,001 (2014 est.)

2,001.1 (2013 est.)
reals (BRL) per US dollar -

5.12745 (2020 est.)

4.14915 (2019 est.)

3.862 (2018 est.)

3.3315 (2014 est.)

2.3535 (2013 est.)
Fiscal yearcalendar yearcalendar year
Public debt49.4% of GDP (2017 est.)

49.8% of GDP (2016 est.)

note: data cover general government debt, and includes debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities
84% of GDP (2017 est.)

78.4% of GDP (2016 est.)
Reserves of foreign exchange and gold$47.13 billion (31 December 2017 est.)

$46.18 billion (31 December 2016 est.)
$374 billion (31 December 2017 est.)

$367.5 billion (31 December 2016 est.)
Current Account Balance-$13.748 billion (2019 est.)

-$13.118 billion (2018 est.)
-$50.927 billion (2019 est.)

-$41.54 billion (2018 est.)
GDP (official exchange rate)$323.255 billion (2019 est.)$1,877,942,000,000 (2019 est.)
Credit ratingsFitch rating: BBB- (2020)

Moody's rating: Baa2 (2014)

Standard & Poors rating: BBB- (2017)
Fitch rating: BB- (2018)

Moody's rating: Ba2 (2016)

Standard & Poors rating: BB- (2018)
Ease of Doing Business Index scoresOverall score: 70.1 (2020)

Starting a Business score: 87 (2020)

Trading score: 62.7 (2020)

Enforcement score: 34.3 (2020)
Overall score: 59.1 (2020)

Starting a Business score: 81.3 (2020)

Trading score: 69.9 (2020)

Enforcement score: 64.1 (2020)
Taxes and other revenues26.5% (of GDP) (2017 est.)35.7% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-2.7% (of GDP) (2017 est.)-1.1% (of GDP) (2017 est.)
Unemployment, youth ages 15-24total: 20%

male: 15.9%

female: 25.4% (2019 est.)
total: 27.8%

male: 24.1%

female: 32.6% (2019 est.)
GDP - composition, by end usehousehold consumption: 68.2% (2017 est.)

government consumption: 14.8% (2017 est.)

investment in fixed capital: 22.2% (2017 est.)

investment in inventories: 0.2% (2017 est.)

exports of goods and services: 14.6% (2017 est.)

imports of goods and services: -19.7% (2017 est.)
household consumption: 63.4% (2017 est.)

government consumption: 20% (2017 est.)

investment in fixed capital: 15.6% (2017 est.)

investment in inventories: -0.1% (2017 est.)

exports of goods and services: 12.6% (2017 est.)

imports of goods and services: -11.6% (2017 est.)
Gross national saving15.7% of GDP (2019 est.)

16.3% of GDP (2018 est.)

16.9% of GDP (2017 est.)
12.2% of GDP (2019 est.)

12.4% of GDP (2018 est.)

13.6% of GDP (2017 est.)

Source: CIA Factbook