Editing Economy of Colombia (section)

=== 21st century ===
By early 2000 there had been the beginning of an economic recovery, with the export sector leading the way, as it enjoyed the benefit of the more competitive exchange rate, as well as strong prices for [[petroleum]], Colombia's leading export product. Prices of [[coffee]], the other principal export product, have been more variable.

Economic growth reached 3.1% during 2000 and inflation 9.0%. Inflation by 2021 has stabilized at 3.30%.<ref>{{Cite web|title=Banco de la República (banco central de Colombia)|url=https://www.banrep.gov.co/es|access-date=2021-07-01|website=Banco de la República (banco central de Colombia)|language=es}}</ref> Colombia's international reserves remained stable at around $8.35 billion in the year 2000 growing to $58.57 billion by 2021,<ref>{{Cite web|date=2019-06-14|title=Reservas internacionales del Banco de la República|url=https://www.banrep.gov.co/es/estadisticas/reservas-internacionales-del-banco-republica|access-date=2021-07-01|website=Banco de la República (banco central de Colombia)|language=es}}</ref> and Colombia has successfully remained in international capital markets. Colombia's total foreign debt at the end of 1999 was $34.5 billion with $14.7 billion in private sector and $19.8 billion in public sector debt. Major international [[credit rating]] organizations had dropped Colombian [[government debt|sovereign debt]] below investment grade, primarily as a result of large fiscal deficits, which current policies are seeking to close. As of 2021 Colombia has recovered its investment grade rating.

Former president [[Álvaro Uribe]] (elected 7 August 2002) introduced several neoliberal economic reforms, including measures designed to reduce the public-sector deficit below 2.5% of GDP in 2004. The government's economic policy and controversial [[democratic security]] strategy have engendered a growing sense of confidence in the economy, particularly within the business sector, and GDP growth in 2003 was among the highest in [[Latin America]], at over 4%. This growth rate was maintained over the next decade, averaging 4.8% from 2004 to 2014.<ref>{{cite web |url=https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?end=2014&locations=CO&start=2004 |title=GDP growth (annual %) |publisher=[[World Bank]] |website=data.worldbank.org |access-date=19 July 2019}}</ref>

According to figures from [[National Administrative Department of Statistics (Colombia)|Dane]], monetary poverty went from 37.2% in 2010 to 26.9% in 2017, which indicates a higher income for the most vulnerable households. During the [[Juan Manuel Santos|Santos]] government, there was an inflationary period that was also a response to the strong external shock of the fall in oil prices. It was a period of contained instability, although inflation increased, no company declared bankruptcy and there was no instability in the financial system.<ref>{{Cite web |last=S.A.S |first=Editorial La República |title=La economía que le entrega el presidente Juan Manuel Santos al nuevo Gobierno |url=https://www.larepublica.co/economia/la-economia-que-le-entrega-el-presidente-juan-manuel-santos-al-nuevo-gobierno-2756726 |access-date=2023-02-16 |website=Diario La República |date=6 August 2018 |language=es}}</ref>

The Santos period managed an increase in GDP of 4% in 2010, which peaked in 2011 to 6.6%. Thereafter it remained at 4% in 2012, 4.9% in 2013 and 4.4% in 2014. In 2011, Colombia recovered its BBB− investment grade, which was raised in 2013 to BBB. As a result of sustained growth, during the eight years of the Santos government, 3.5 million jobs were created, while 5.4 million people were lifted out of poverty.<ref>{{Cite web |date=2018-08-03 |title=Santos dejó una economía en crecimiento, pero un elevado gasto público |url=http://www.rcnradio.com/politica/gobierno-santos-dejo-una-economia-en-crecimiento-y-un-elevado-gasto-publico |access-date=2023-02-16 |website=RCN Radio |language=es}}</ref>

The focus of Santos' second term was to reach a peace agreement with the FARC whose economic effects, according to assumptions, could imply a GDP growth of up to two additional percentage points. Santos' best legacy is precisely the one related to security since this will have an effect in the medium and long term in terms of investment decisions, job creation, and the beginning of a great revolution in the country's infrastructure: war prevented development in the most affected areas for centuries.

Colombia's President [[Iván Duque]] withdrew a controversial tax reform bill following four weeks of [[2021 Colombian protests|huge protests]] across the country starting 28 April 2021.<ref>{{Cite news|url=https://www.bbc.com/news/world-latin-america-56967209|title = Colombia withdraws controversial tax reform bill after mass protests|work = BBC News|date = 2 May 2021}}</ref> In 2021, Colombia registered an increase in Gross Domestic Product of more than 10%, as a result of a rebound effect that derived from the 6.8% collapse a year earlier, caused by the economic closures decreed to stop the coronavirus pandemic. The pandemic exacerbated poverty. In 2021, official figures showed that 39% of Colombians &ndash; out of a population of 51.6 million inhabitants &ndash; were in a condition of monetary poverty. Although it shows a slight improvement compared to 2020 (42.5%), it meant a setback of at least a decade.<ref>{{Cite web |date=2022-05-27 |title=Economía &ndash; Colombia en cifras: el país que deja Iván Duque tras cuatro años de mandato |url=https://www.france24.com/es/programas/econom%C3%ADa/20220527-colombia-cifras-pais-ivan-duque-mandato |access-date=2023-02-16 |website=France 24}}</ref>

The greatest increase in the value of the debt also occurred in the Duque government, according to figures from the [[Bank of the Republic (Colombia)|Bank of the Republic]]. Between 2020 and 2021 the balance increased by 17 billion dollars, and from 2019 to 2020 it increased by 16 billion. That figure, which corresponds to a deficit of 7.1 percent of GDP, was the debt that the Central National Government or GNC (the State without its companies or regional entities) had in 2021, according to the fiscal closing bulletin.<ref>{{Cite web |title=External Debt (Public and Private) |url=http://www.banrep.org/informes-economicos/ine_bol_deuex.htm |website=Bank of the Republic}}</ref>

In the Duque government, specifically between May and June 2020, 66.7 percent of the country's gold reserves were sold, which went from 710.5 to 237.4 million dollars. The decision was made by the Bank of the Republic. The sale received criticism because although it was done at a time of rising prices &ndash; after five years in which this did not happen &ndash; it was before gold reached a record price.<ref>{{Cite web |url=https://www.lasillavacia.com/historias/silla-nacional/detector-duque-no-vendio-mas-del-67-por-ciento-del-oro-de-colombia/ |title=Detector: Duque no vendió más del 67 por ciento del oro de Colombia |access-date=2023-02-16 |website=lasillavacia.com|date=27 August 2020 }}</ref>

The COVID-19 recession had a profound impact on Colombia's economy, with significant disruptions to GDP components, unemployment, and inflation. Household consumption, which is a key driver of the economy, saw the sharpest decline, dropping by 20% in the second quarter of 2020 due to lockdowns, income uncertainty, and limited mobility.<ref name=":0">{{Cite web |title=Quarterly real GDP growth - OECD countries |url=https://data-explorer.oecd.org/vis?df%5Bds%5D=DisseminateFinalDMZ&df%5Bid%5D=DSD_NAMAIN1@DF_QNA_EXPENDITURE_GROWTH_OECD&df%5Bag%5D=OECD.SDD.NAD&dq=Q..AUS+AUT+BEL+CAN+CHE+CHL+COL+CRI+CZE+DEU+DNK+ESP+FIN+EST+FRA+GBR+GRC+HUN+ISL+LTU+ISR+ITA+JPN+KOR+LUX+LVA+MEX+NLD+NOR+NZL+POL+PRT+SVK+SVN+SWE+TUR+USA+OECD+G20+G7+USMCA+OECDE+EA20+EU27_2020..........&lom=LASTNPERIODS&lo=5&to%5BTIME_PERIOD%5D=false |access-date=2024-11-24 |website=data-explorer.oecd.org}}</ref> Despite a partial recovery in Q3 2020, high unemployment (peaking at 19.9%)<ref>{{Cite web |title=Infra-annual labour statistics |url=https://data-explorer.oecd.org/vis?tm=DF_IALFS_INDIC&pg=0&snb=1&vw=tb&df%5Bds%5D=dsDisseminateFinalDMZ&df%5Bid%5D=DSD_LFS@DF_IALFS_INDIC&df%5Bag%5D=OECD.SDD.TPS&df%5Bvs%5D=1.0&dq=.UNE_LF_M...Y._T.Y_GE15..M&to%5BTIME_PERIOD%5D=false&lb=bt&pd=2019-10,2021-03 |access-date=2024-11-24 |website=data-explorer.oecd.org}}</ref> and ongoing uncertainties slowed the recovery of consumer spending. Investment also decreased during the pandemic, with businesses reducing capital expenditures amid uncertainty (-31.6%).<ref name=":0" /> Although investment exhibited a significant recovery in Q3 2020, reaching 26%, the drop in global demand for Colombia's exports—particularly oil and coal—influenced a slow recovery as indicated by 10% growth rate of real GDP following a 16% trough.<ref name=":0" /> Government spending rose in response to the pandemic, driven by fiscal stimulus and social aid programs, helping to stabilize the economy.

The deterioration of the labor market severely affected sectors such as retail, hospitality, and informal employment, deepening the economic contraction.<ref name=":0" /> Although unemployment gradually decreased to 14.75% by early 2021, it stayed significantly above the pre-pandemic levels. Inflation, on the other hand, remained low in Q1 2020, but turned into deflation for the remaining of 2020 and the first quarter of 2021, signaling a significant weakened aggregate demand.<ref name=":0" /> Overall, Colombia's real GDP contracted by about 16% in Q2 2020, due to declines in household consumption and investment.<ref name=":0" />  While there were modest signs of recovery by early 2021, the combination of high unemployment and deflation continued to hinder the full economic rebound.<ref>{{Cite web |title=OECD Data Archive |url=https://data-explorer.oecd.org/vis?lc=en&df%5Bds%5D=DisseminateArchiveDMZ&df%5Bid%5D=DF_DP_LIVE&df%5Bag%5D=OECD&df%5Bvs%5D=&av=true&pd=2019-10,2021-03&dq=ZAF+SAU+PER+RUS+IDN+IND+BRA+CHN+ARG+USA+GBR+TUR+CHE+OAVG+ESP+SWE+SVN+SVK+PRT+POL+NOR+NLD+MEX+LUX+LTU+LVA+KOR+JPN+ITA+ISR+IRL+ISL+HUN+GRC+DEU+FRA+FIN+DNK+EST+CZE+CRI+COL+CHL+CAN+AUT+BEL+AUS.CPI...M&to%5BTIME_PERIOD%5D=false&vw=tb |access-date=2024-11-24 |website=data-explorer.oecd.org}}</ref>