{"id":71628,"date":"2024-11-22T08:59:34","date_gmt":"2024-11-22T13:59:34","guid":{"rendered":"https:\/\/mascolombia.com\/colombia-among-the-worst-per-capita-export-performers-in-latin-america\/"},"modified":"2024-11-22T08:59:34","modified_gmt":"2024-11-22T13:59:34","slug":"colombia-among-the-worst-per-capita-export-performers-in-latin-america","status":"publish","type":"post","link":"https:\/\/mascolombia.com\/en\/colombia-among-the-worst-per-capita-export-performers-in-latin-america\/","title":{"rendered":"Colombia among the worst per capita export performers in Latin America"},"content":{"rendered":"\n

Colombia\u2019s export competitiveness is at alarmingly low levels when compared to other economies in the region, especially in terms of per capita exports, an indicator that measures export performance relative to population size.<\/p>\n\n

In 2023, the country recorded average per capita exports of just USD $944, one of the worst performances in the region.<\/p>\n\n

You may read: Are Colombian remittances at risk with Trump\u2019s victory?<\/strong><\/a><\/p>\n\n

Per capita exports: an indicator of competitiveness<\/h2>\n\n

A country\u2019s economic dynamism can be measured through the performance of exports per capita, by evaluating export competitiveness as a function of the number of inhabitants.<\/p>\n\n

In this aspect, Colombia is lagging behind. While Chile exports USD $4,926 per inhabitant, Mexico USD $4,616, Costa Rica USD $3,686, Colombia has exports per capita of only USD 944. <\/p>\n\n

\"per
<\/figcaption><\/figure>\n\n

In terms of exports as a percentage of GDP, Colombia is below countries such as Mexico (33.1%), Ecuador (26.2%), Peru (24.0%) and Costa Rica (22.2%), according to World Bank data. In Colombia, exports represent 13.7% of the product, a relatively low share.<\/p>\n\n

The outlook for Colombian foreign trade<\/h2>\n\n

According to World Bank data<\/a>, Colombia has a low level of exports per capita and a lower share of foreign trade in its GDP compared to most Latin American countries. This low dynamism not only limits national economic growth, but also reflects a lack of diversification in the country\u2019s export supply.<\/p>\n\n

In 2023, 57.7% of Colombian exports were of primary goods, such as fresh fruit, meat, rice, coffee, coal and crude oil, among others. These products, although in demand in international markets, tend to have low value added, which limits Colombia\u2019s competitiveness in more innovative sectors.<\/p>\n\n

\"per
<\/figcaption><\/figure>\n\n

Industrialized goods, which accounted for 34.6% of exports, are also concentrated in natural resources such as petroleum derivatives, wood products and basic metals. Medium- and low-technology exports, which include vehicles, chemicals, plastics and textiles, contributed a modest 9.8% and 6%, respectively, to external sales. Finally, high-tech products accounted for only 2.3% of total exports, highlighting the country\u2019s lag in innovation sectors.<\/p>\n\n

You may also read: FTA with the European Union: Possibilities for renegotiation<\/strong><\/a><\/p>\n\n

Low wealth generation in Colombia<\/h2>\n\n

Colombia\u2019s low per capita export performance and high dependence on primary goods is compounded by the country\u2019s low generation of wealth as measured by per capita income.<\/p>\n\n

\"\"<\/figure>\n\n

In 2023, while the United States produced USD $80,000 of wealth per capita, the European Union generated USD $40,000. In Latin America, Chile topped the list with USD $17,000, followed by Costa Rica and Argentina, which produced USD $16,000 and USD $14,000, respectively.<\/p>\n\n

Among the countries compared in the graph, Colombia generated only US$6,900 and was only above Ecuador and Peru, which produced US$6,500 and US$3,700, in that order.<\/p>\n\n

What is holding back Colombia\u2019s export competitiveness?<\/h2>\n\n

This low per capita export performance reflects the structural challenges Colombia faces, including a dependence on primary goods and the limited incorporation of advanced technology in its export offer. <\/p>\n\n

The lack of diversification and value added in exports reduces the country\u2019s opportunities to compete in high-growth sectors and limits its ability to generate sustained employment and income.<\/p>\n\n

APEC 2024 Summit: tensions and protests make it difficult to reach significant agreements<\/a><\/blockquote>