Foreign investment rose 24.4% What drove it and what is the use of the citizen? – Sectors – Economy

A promising indicator follows from the balance of payments report in the second quarter, presented Monday by the Banco de la República: Foreign direct investment (FDI) increased 24.4 percent compared to the same period last year.

According to the Issuer, "the flow of FDI was US $ 7,273 million, more than US $ 1,425 million more than last year."

It should be remembered that, in the first six months of 2018, the foreign investment was US $ 5,847 million and in 2017, US $ 5,040 million.

Another noteworthy fact is that FDI in mining and oil, while still the highest (40.3%), this time it grew less, giving space to other sectors that have attracted the attention of investors, whose developments will be key to job creation.

This is how FDI in the first half also came from financial and business services (17.1%), manufacturing industry (14.9%), commerce and hotels (7.9%), transportation and communications (7.2% ), electricity (2%), and other sectors (10.6%).

According to the report of the Bank of the Republic, “of the total income received by FDI, 42.7% corresponded to new capital shares; 31.4%, to reinvestment of profits, and 25.9%, to debts between companies with direct investment relationships ”.

On the other hand, in the same period, there was a greater current account deficit in the country.

Between January and June, the country's imbalance reached US $ 6,827 million, which represents US $ 713 million more than the same period of the previous year.

As a proportion of gross domestic product (GDP), the figure amounts to 4.37%, which implies that it grew by 0.63 percentage points compared to the first half of 2018.
The dollar had to do

“The increase in dollars of the current deficit (0.41 percentage points) and the effect of the depreciation of the peso against the dollar in the measurement of nominal GDP in dollars (0.46 percentage points), which was partially offset by the growth of nominal GDP ”, they are the explanation that the Issuer sees.

Exports

Export revenues during the semester registered US $ 21,628 million, representing an annual reduction of 0.5%.

For the Bank of the Republic, “the export decline originated from lower sales abroad of coal, industrial products, ferronickel and coffee.

In contrast, there were increases in the external sales of oil and its derivatives, non-monetary gold and bananas ”.

ECONOMY AND BUSINESS DRAFTING