Foreign investment in Colombia fell in 2024 to levels not seen since 2020, during the Covid-19 pandemic crisis. According to a report by Colombia’s Central Bank, the country received a total of US$14.23 billion in foreign investment over the year, confirming a downward trend in capital inflows.
The figure represents a decline of US$2.56 billion compared to 2023, marking a 15.2% reduction year-over-year. This decrease was largely attributed to lower equity investments and reduced use of debt instruments, although profit reinvestment showed positive growth.
Foreign investment in Colombia declined in 2024
The report also highlights that despite the lower inflow of external capital, the country’s current account deficit significantly decreased, indicating that the Colombian economy managed to moderate its imbalance in transactions with the rest of the world.
When analyzing the distribution of these flows by sector, financial and business services emerged as the main recipients of investment, accounting for one-third of the total.
Mining and petroleum ranked second, accounting for 25% of foreign investments in Colombia in 2024, while manufacturing industries received 14% and commerce and hotels 13%. Other sectors, such as electricity generation, accounted for 6%, while agriculture, construction, transportation and community services together made up 11%.
However, the overall balance showed that seven of the 12 sectors analyzed experienced declines in foreign capital inflows compared to 2023. The most affected sector was transportation, storage and communications, which saw a 70.1% drop.
Similarly, foreign investments in mining and quarrying declined by 60.8%, while other sectors, including community services, manufacturing, and oil, recorded decreases of 35.6%, 33.5% and 26.8%, respectively.
Possible causes behind foreign investment drop
The central bank’s report indicates that the decline in foreign direct investment may be linked to multiple factors, including global uncertainty driven by economic and geopolitical volatility, as well as fluctuations in international financial markets.
Additionally, the report notes that certain changes in local conditions—such as economic policy adjustments and regulatory modifications—may have led some investors to reevaluate their business strategies in Colombia.
Despite these challenges, Colombian monetary authorities remain optimistic about an expected recovery this year. To this end, they recommend expanding tax incentives, improving the regulatory environment and strengthening strategic sectors to attract greater interest from international investors.