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 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.
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.
- Global X/InterBolsa FTSE Colombia 20 Index (NYSEArca: GXG)
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Max Chen contributed to this article.