Colombia is a free market economy with major commercial and investment ties to the United States. Transition from a highly regulated economy has been underway for more than 15 years with tariff reductions, financial deregulation, privatization of state-owned enterprises and adoption of more liberal foreign exchange rates. These policies eased import restrictions and opened most sectors to foreign investment.
Foreign investors are welcomed as technology, management expertise, access to overseas markets and finance, can be brought to the market. Colombia has a rapidly growing economy in the Latin America region with a qualified labour force.
Historically, Colombia has not suffered any dramatic economic collapses. Prudent fiscal policies are maintained and economic reforms including tax, pension, and budget reforms are pursued.
The sustained growth of the Colombian economy can be attributed to an increase in domestic security, the policies of keeping inflation low, maintaining a stable currency (peso), petroleum price increases and an increase in exports to neighbouring countries and the United States as a result of trade liberalization.