Investment Boom To Propel Growth

BMI View: We believe the removal of political uncertainty following the election of President Juan Manuel Santos places Colombia in a strong position to significantly increase FDI-financed fixed investment over the medium term, particularly as the new government looks set to continue with the previous administration's security and business-friendly policies. Investment will drive the majority of Colombian real GDP growth in 2010 and 2011, but private consumption will also feature prominently as credit growth recovers from its 2009 decline. We maintain our above-consensus forecast for real GDP growth to hit 3.9% y-o-y in 2010 and 4.7% in 2011.

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