CIA Factbook The World Factbook 1994: ColombiaEconomy Overview: Colombia's economic growth has recovered steadily since 1991 as President GAVIRIA'S sweeping economic reform measures have taken hold. Market reforms have included trade and investment liberalization, labor and tax overhauls and bureaucratic streamlining, among other things. Furthermore, conservative fiscal and monetary policies have helped to steadily reduce inflation to 23% and unemployment to about 7% in 1993. The rapid development of oil, coal, and other nontraditional industries has helped offset the decline in coffee prices. A major oil find in 1993 in eastern Colombia may provide an extra $3 billion annually to the economy by 1997. Increased foreign investment and even greater domestic activity have been hampered, however, by a troublesome rural insurgency, a decrepit energy and transportation infrastructure, and drug-related violence. Agriculture also has encountered problems in adjusting to fewer subsidies, greater competition, and the collapse of the international coffee agreement, which has kept world coffee prices at near-record lows in 1991-93. Business construction was a leading sector in 1993. The substantial trade deficit in 1993 was the result of a strong peso that inhibited exports and a liberalized government policy that spurred imports. National product: GDP—purchasing power equivalent—$192 billion (1993 est.) National product real growth rate: 5.1% (1993 est.) National product per capita: $5,500 (1993 est.) Inflation rate (consumer prices): 22.6% (1993 est.) Unemployment rate: 7.9% (1993 est.) Budget: • revenues: $11 billion • expenditures: $12 billion, including capital expenditures of $2.2 billion (1993 est.) Exports: $6.9 billion (f.o.b., 1992 est.) • commodities: petroleum, coffee, coal, bananas, fresh cut flowers • partners: US 39%, EC 25.7%, Japan 2.9%, Venezuela 8.5% (1992) Imports: $6.7 billion (c.i.f., 1992 est.) • commodities: industrial equipment, transportation equipment, consumer goods, chemicals, paper products • partners: US 36%, EC 18%, Brazil 4%, Venezuela 6.5%, Japan 8.7% (1992) External debt: $17 billion (1992) Industrial production: growth rate 2% (1993 est.); accounts for 21% of GDP Electricity: • capacity: 10,193,000 kW • production: 36 billion kWh • consumption per capita: 1,050 kWh (1992) Industries: textiles, food processing, oil, clothing and footwear, beverages, chemicals, metal products, cement; mining—gold, coal, emeralds, iron, nickel, silver, salt Agriculture: growth rate 2.7% (1993 est.) accounts for 21% of GDP; crops make up two-thirds and livestock one-third of agricultural output; climate and soils permit a wide variety of crops, such as coffee, rice, tobacco, corn, sugarcane, cocoa beans, oilseeds, vegetables; forest products and shrimp farming are becoming more important Illicit drugs: illicit producer of coca, opium, and cannabis; about 37,100 hectares of coca under cultivation; the world's largest processor of coca derivatives into cocaine in 1992; supplier of cocaine to the US and other international drug markets Economic aid: • recipient: US commitments, including Ex-Im (FY70-89), $1.6 billion; Western (non-US) countries, ODA and OOF bilateral commitments (1970-89), $3.3 billion; Communist countries (1970-89), $399 million Currency: 1 Colombian peso (Col$)=100 centavos Exchange rates: Colombian pesos (Col$) per US$1—921.20 (January 1994), 863.06 (1993), 759.28 (1992), 633.05 (1991), 502.26 (1990), 382.57 (1989) Fiscal year: calendar year