Date

03 de August 2012

The Economy of Bogota is Going Through its Best Time

Especial Report
  • International positioning of Bogota | The city in the rankings 

  • Bogota's positioning nationally

The Economy of Bogota is Going Through its Best Time

1. International positioning of Bogota | The City in the rankings

Bogota is considered as an elite city in Latin America; its favorable business environment, its vision of the future, its capacity for innovation and the quality of life of its inhabitants have made it a strong competitor for the other cities in the region, in terms of attracting investors and in terms of its positioning world wide.  Many rankings ratify the progress achieved by Bogota in terms of economic growth and as an investment environment:

  • Best cities to do business in Latin America

Every year, the magazine "America Economía" classifies the best cities to do business, in a ranking with 45 positions; for two consecutive years (2010-2011), Bogota has been eighth in that ranking, thus becoming one of the cities with the best climate to do business in the region.

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Source:  Source: America Economía Intelligence, 2011.
 

  • Latin American Cities of the Future

The ranking developed by FDI Magazine includes six categories:  economic potential, human resources, costs, quality of life, infrastructure and business environment.  Bogota was ranked fourth among cities in Latin America: 

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Source:  American Cities of the Future, FDI Magazine, 2011


 

  • International ranking of corporate tourism (2011)

The International Congress and Convention Association (ICCA) in its most recent international ranking of corporate tourism (2011) places Bogota on the sixth place among Latin American cities, and 45th worldwide.  For the second consecutive year, the city was positioned as the most important in the country, above Cartagena and Medellin.

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Source:  Convention Bureau, based on the International Congress and Convention Association (ICCA). 
 

  • Best Cities to Innovate in Latin America (2011)

The America Economía magazine classifies the best cities to innovate in Latin America.  Bogota was ranked fifth in this listing.  The city is consolidating its position internationally as a hub of highly qualified human capital, with a high capacity for knowledge generation. 

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Source:  America Economia Intelligence, 2011.

 

  • Ranking of Latin American cities to attract investments

IDN Inteligencia de Negocios and CEPEC Universidad del Rosario rank the best cities in investment appeal; Bogota is ranked fifth in this listing, following Sao Paulo, Santiago, Mexico City and Lima.

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Source:  IDN Inteligencia de Negocios and CEPEC Universidad del Rosario, 2012. 
 
 
Furthermore, Bogota has Invest in Bogota, an agency for the promotion of foreign investment, that was classified as the best agency in developing countries, and number 16 among 216 similar agencies in the world.

 

2. Positioning of Bogota at a national level

Bogota is positioning itself as the most important market in Colombia, with over 7.5 million inhabitants, while Medellin, Cali, Barranquilla, Cartagena and Bucaramanga jointly total 7.3 million people.

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The importance of Bogota's market in the national setting is reflected in the size of its productive activities.  According to the most recent figures from DANE, the country's capital concentrated over one fourth of the national GDP, surpassing the levels of value generation achieved jointly by significant regions of the country such as Antioquia and Valle (23.2%). 

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Bogota's generation of added-value mainly focuses on financial services; in fact, during 2011 the city accounted for over half of the financial transactions in the country, thus confirming it as the main business in Colombia, and one of the most important in Latin America. 

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The dynamism of Bogota's economy has resulted in better living conditions for its inhabitants.  Currently, Bogota has one of the lowest poverty rates in the country. 

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Furthermore, Bogota's good performance in the economic environment has allowed it to achieve a noteworthy price stability.   During 2011, the city reported one of the lowest inflation rates compared to the main cities in Colombia.

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Thus, the significant economic stability that Bogota has shown during recent years echoes in the perception held by entrepreneurs and investors worldwide; evidence of this is the fact that in 2011, three of the most important risk raters in the world rated Bogota as an investor destination, that is, a destination where investments are not speculative. 

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The very significant economic activities experienced in Bogota is supported by a significant stability of its work force.  With over 4.4 million people, the capital concentrates 19% of the economically active population in Colombia. 

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In addition to being broad, the labor force found in Bogota is trained at levels suitable to the demands of dynamic and sophisticated dynamic activities, such as those happening in the city. 
 
Bogota focuses almost 51% of all enrolled in, and 58% of all graduates from, higher education institutions in the country, with a student population that is significantly higher than that of other important regions in Colombia.   Also, and in addition of having the largest skilled human resources, it is worth noting, for example, that salaries in Medellin are higher than in Bogota, even when the talent base is smaller.

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Bogotá ofrece amplias opciones de empleo para la fuerza laboral con la que cuenta. La capital registra la mejor tasa de ocupación en comparación con las principales ciudades del país.

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On the other hand, direct access from Bogota to a myriad of destinations in the world, attests to the city's international relevance.  The airport, El Dorado, serves 559 weekly flights, distributed among 33 international direct connections, which confirms the significance that this air terminal has for the movement of passengers and cargo.

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Source:   Aerocivil.  Calculations:  Invest in Bogota.
 
It is quite evident that a city that is well connected to the rest of the world has better chances of drawing a significant number of visitors.  In accordance with the above, it is worth noting that during 2011 Bogota received 54.5% of all foreign visitors arriving in the country, mainly those coming from the United States (18,6%), Venezuela (13,9%) and Brazil (7,8%). 

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Finally, the most significant step forward in the city is in security matters.  The homicide rate per 100 thousand inhabitants recorded in Bogota in 2010 was significantly lower than that of Cali and Medellin; the figures in these cities were approximately 60 points higher than that of the country's capital.

 

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Source:  National Forensic Office, Forensis;  Colombian National Police, Criminal Investigation Unit and INTERPOL; National Administrative Statistics Department.