section_path: Economy
section_name: Economy
paragraph_text: Economy
  
  Historically an agrarian economy, Colombia urbanized rapidly in the 20th century, by the end of which just 15.8% of the workforce were employed in agriculture, generating just 6.6% of GDP; 20% of the workforce were employed in industry and 65% in services, responsible for 33% and 60% of GDP respectively. The country's economic production is dominated by its strong domestic demand. Consumption expenditure by households is the largest component of GDP.
  
  Colombia's market economy grew steadily in the latter part of the 20th century, with gross domestic product (GDP) increasing at an average rate of over 4% per year between 1970 and 1998. The country suffered a recession in 1999 (the first full year of negative growth since the Great Depression), and the recovery was long and painful. However, growth reaching 7% in 2007, one of the highest in Latin America. According to International Monetary Fund estimates, in 2023, Colombia's GDP (PPP) was US$1 trillion, 32nd in the world and third in South America, after Brazil and Argentina.
  
  Total government expenditures account for 28% of the domestic economy. External debt equals 40% of gross domestic product. A strong fiscal climate was reaffirmed by a boost in bond ratings. Annual inflation closed 2017 at 4.09% YoY (vs. 5.75% YoY in 2016). The average national unemployment rate in 2017 was 9.4%, although the informality is the biggest problem facing the labour market (the income of formal workers climbed 24.8% in 5 years while labor incomes of informal workers rose only 9%). Colombia has free-trade zones (FTZ), such as Zona Franca del Pacifico, located in the Valle del Cauca, one of the most striking areas for foreign investment.
  
  The financial sector has grown favorably due to good liquidity in the economy, the growth of credit and the positive performance of the Colombian economy. The Colombian Stock Exchange through the Latin American Integrated Market (MILA) offers a regional market to trade equities. Colombia is now one of only three economies with a perfect score on the strength of legal rights index, according to the World Bank.
  
  Colombia is rich in natural resources, and it is heavily dependent on energy and mining exports. Colombia's main exports include mineral fuels, oils, distillation products, fruit and other agricultural products, sugars and sugar confectionery, food products, plastics, precious stones, metals, forest products, chemical goods, pharmaceuticals, vehicles, electronic products, electrical equipment, perfumery and cosmetics, machinery, manufactured articles, textile and fabrics, clothing and footwear, glass and glassware, furniture, prefabricated buildings, military products, home and office material, construction equipment, software, among others. Principal trading partners are the United States, China, the European Union and some Latin American countries.
  
  Non-traditional exports have boosted the growth of Colombian foreign sales as well as the diversification of destinations of export thanks to new free trade agreements. Recent economic growth has led to a considerable increase of new millionaires, including the new entrepreneurs, Colombians with a net worth exceeding US$1 billion.
  
  In 2017, however, the National Administrative Department of Statistics (DANE) reported that 26.9% of the population were living below the poverty line, of which 7.4% were in "extreme poverty". The multidimensional poverty rate stands at 17.0 percent of the population. The Government has also been developing a process of financial inclusion within the country's most vulnerable population.
  
  The contribution of tourism to GDP was US$5,880.3bn (2.0% of total GDP) in 2016. Tourism generated 556,135 jobs (2.5% of total employment) in 2016. Foreign tourist visits were predicted to have risen from 0.6 million in 2007 to 4 million in 2017.