Colombia: The next Indonesia?
Colombia could become the Latin American equivalent of Indonesia, a Forbes report has concluded, noting the nations’ similarities in economic resilience, investment credit worthiness and large youth populations.
Colombia has come a long way from its turbulent history, which to this day affects foreign perception of the Andean nation – often erroneously. Yet in 2012, the nation boasted a 4-per cent hike in economic output, followed by a second investment upgrade raised by S&P in April 25 on the back of increased tax revenues and renewed peace talks with the country’s Marxist-cum-druglord rebels.
Economically speaking, Indonesia is also soaring, During the first three months of 2013, the Southeast Asian archipelago expanded 6.02 per cent, a number that is largest attributed to soaring consumption by the middle class, estimated to be 80 million.
To draw a salient parallel, like Indonesia, Colombia’s roughly 43 million population makes it the third most populous in its region, coming just after Brazil and Mexico, while Indonesia’s 240 million people follow behind its powerhouse neighbours India and China. Moreover, both nations have huge youth populations: 44 per cent of Colombians are under the age of 25, with 43.7 per cent for Indonesia.
However, this is where similarities begin to fray apart. The first quarter growth marks a continued deceleration that has been mostly ongoing since end-2010; many Indonesia watchers attribute this to inordinate red tape and decreased public investment and consumer consumption.
Additionally, Colombia was able to nab the S&P upgrade long before Indonesia, with a credit-worthy rating by Moody’s to stand by as well.
Both nations will need to battle unbridled corruption in their ambitions to reach developmental goals and shake aside poor business perceptions. It is debatable, but Colombia may be more the aggressive economic juggernaut than Indonesia already.
Do you agree with this comparison? Tweet your thoughts to @investvine
[caption id="attachment_9872" align="alignleft" width="300"] View of Bogotá, Colombia's capital[/caption] Colombia could become the Latin American equivalent of Indonesia, a Forbes report has concluded, noting the nations’ similarities in economic resilience, investment credit worthiness and large youth populations. Colombia has come a long way from its turbulent history, which to this day affects foreign perception of the Andean nation – often erroneously. Yet in 2012, the nation boasted a 4-per cent hike in economic output, followed by a second investment upgrade raised by S&P in April 25 on the back of increased tax revenues and renewed peace talks with the country’s...
Colombia could become the Latin American equivalent of Indonesia, a Forbes report has concluded, noting the nations’ similarities in economic resilience, investment credit worthiness and large youth populations.
Colombia has come a long way from its turbulent history, which to this day affects foreign perception of the Andean nation – often erroneously. Yet in 2012, the nation boasted a 4-per cent hike in economic output, followed by a second investment upgrade raised by S&P in April 25 on the back of increased tax revenues and renewed peace talks with the country’s Marxist-cum-druglord rebels.
Economically speaking, Indonesia is also soaring, During the first three months of 2013, the Southeast Asian archipelago expanded 6.02 per cent, a number that is largest attributed to soaring consumption by the middle class, estimated to be 80 million.
To draw a salient parallel, like Indonesia, Colombia’s roughly 43 million population makes it the third most populous in its region, coming just after Brazil and Mexico, while Indonesia’s 240 million people follow behind its powerhouse neighbours India and China. Moreover, both nations have huge youth populations: 44 per cent of Colombians are under the age of 25, with 43.7 per cent for Indonesia.
However, this is where similarities begin to fray apart. The first quarter growth marks a continued deceleration that has been mostly ongoing since end-2010; many Indonesia watchers attribute this to inordinate red tape and decreased public investment and consumer consumption.
Additionally, Colombia was able to nab the S&P upgrade long before Indonesia, with a credit-worthy rating by Moody’s to stand by as well.
Both nations will need to battle unbridled corruption in their ambitions to reach developmental goals and shake aside poor business perceptions. It is debatable, but Colombia may be more the aggressive economic juggernaut than Indonesia already.
Do you agree with this comparison? Tweet your thoughts to @investvine
