For years, Oil has positioned itself as one of the pillars of the Colombian economy. This is taking into account the impact it has on indicators such as exports, the Gross Domestic Product (GDP), foreign investment and job creation.
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To better understand the role this fuel plays in finance, according to the financial services firm Skandia, since the 1990s, it has represented nearly 40% of the country’s exports. In terms of growth, Oil accounts for approximately 3.5% of GDP.
This hydrocarbon also constitutes an important source of income, which comes mostly from Ecopetrol, the state oil company. To give you an idea, according to data from the Ministry of Finance, in 2023, The company transferred to the Nation nearly $58 billion ($22 billion in dividends, $26 billion in taxes and $10 billion in royalties).
And while these data are significant, high dependence on oil can have both negative and positive impacts. This considering the volatility of international prices.
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Oil
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Why? When oil prices rise, The national economy experiences an increase in its income, This means more investment in the energy sector, increased spending on infrastructure and health, increased foreign investment and more jobs.
But if the value falls, this can have the opposite effect. That is, an increase in the fiscal deficit, less investment in industries related to the energy sector, an increase in fiscal adjustments, among other impacts.
Skandia points out that some of the actions that could help reduce the consequences of this dependency include diversifying the economy, promoting the development of alternative sectors, fiscal policies focused on adapting to international prices and allocating resources to new energy sources.
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