As Colombia develops and matures into a thriving economy, foreign investors are beginning to eye the country as a prime investment destination. The economy, along with related exchange traded fund (ETF), has enjoyed a healthy expansion, but the pace may begin to slow.
Chris Berry of House Mountain partners comments that Colombia is an emerging market with a large and growing middle class, a diverse economy and relatively stable government, according to Mineweb.
Miller O’Prey of Solvista Gold notes the greater stability that is starting to come out of Colombia is allowing the country to develop its precious-metals mining potential. [5 ETFs Beating the Market.]
Foreign direct investment (FDI) from gold miners will invest $4.5 billion in Colombia for the next ten years, which will help improve the country’s standard of living. Additionally, with greater political stability and stronger metal prices, more FDI will likely go into Colombia’s mining sector, adds Berry.
Colombia’s Central Bank expects the full-year expansion to slow down a bit after a more moderate growth for the transportation, energy, gas and water industries in the third quarter, reports Jack Kimball for Reuters. The statistics agency stated that the economy grew a smaller-than-expected 4.5% in the second quarter year-over-year. The government estimates a 4.5% to 5% expansion for the year while the Central Bank forecasts a 3.5% to 5.5% growth. [Why Colombia ETF Is One of the Year’s Best.]
For more information on Colombia, visit our Colombia category.
- Global X/InterBolsa FTSE Colombia 20 Index (NYSEArca: GXG)
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.