Economic trends
After two consecutive years of a growth rate higher than 6%, Colombia's showed a growth rate of 2.5% in 2008.
Similar to other Latin American countries, the global economic crisis had a severe impact on the Colombian economy. The main consequences of the crisis on the economy were the reduction of the influx of capital to the country, the rarefaction of international credit, the price drop in exported raw materials, the trade deficit increase and the devaluation of the local currency in relation to the American dollar. Nationally, several union protests and social movements took place, demanding better living and working conditions.
The government took measures to save public finances by mainly imposing restrictions on bank loans, and maintaining the stability of macro-economic indicators.
Unemployment went up to 11.3% and more than half of the colombians continue to work in the informal sector. The Colombian purchasing power diminished, and the cost of living increased to 7.5%.
Main branches of industry
Agriculture represents 9% of the GDP and employs 22% of the active population. Due to the climate and the topography, agriculture is extensive and very varied, and makes up 75% of the export revenue. Colombia's main crops are coffee, bananas, cut flowers, cotton, sugarcane, livestock, rice and corn. Cultivated land hardly takes up 8% of the country's total surface area. Natural resources are coal, oil, natural gas, iron ore, nickel and gold.
Industry represents around 40% of the GDP and employs nearly 20% of the population. Colombia's main industries are textile, chemical products, metallurgy, cement, cardboard containers, plastic resins and drinks.
Colombia's main economic sector is the services sector, which represents more than 50% of the GDP and employs nearly 60% of the active population.
International trade
Colombia has signed trade agreements (website in Spanish only) with Chile, the CAN countries (Andean Community), MERCOSUR countries (website in Spanish or Portugese), Central American and Caribbean countries, and the European Union. It has also signed free trade treaties (website in Spanish only) with Chile, Guatemala, Honduras, El Salvador, Canada, Mexico, Switzerland, Norway, Iceland, Liechtenstein and the United States.
Exports from Colombia represented USD 38.5 billion in 2008. The country mainly exported oil, coal, coffee, flowers, textiles products, ferronickel, bananas and chemical products. Its main clients are the United States, Venezuela and Chile.
In 2008, imports amounted to USD 37.5 billion. They were mainly machinery and equipment, grain, chemical products, transport equipment, electric and electronic equipment. Main import partners are the United States, China, Mexico and Brazil.
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