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Colombia: staying the course.

It's clear that Colombian President Alvaro Uribe's security policies have been crucial to the country's economic recovery and growth. Although foreign investment is always important, in Colombia's case domestic investment is probably more so. According to U.S. financial institution Credit Suisse First Boston (CSFB), foreign direct investment flowing into Colombia in 2005 equaled 4% of gross domestic product, while domestic investment came to the equivalent of 20%. "Domestic consumption is becoming more interesting to us than foreign investment," says Carola Sandy, a CSFB economist.

Everything seems to indicate that what many call the "Uribe Effect" will carry on. Recent constitutional reform will allow the incumbent to seek re-election in 2006. At press time, polls indicated that 70% of those planning to vote would re-elect Uribe. If things change and Uribe is voted out of office, analysts believe the economy won't necessarily suffer. "If Uribe is not re-elected--and I don't believe that will be the case--I don't think anything major will take place," says Sandy. "Even though the other candidates are not as far to the right, they are people who are well-received in the markets."
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Title Annotation:economic development forecast
Author:Velazquez, Andres F.
Publication:Latin Trade
Article Type:Brief article
Geographic Code:3COLO
Date:Mar 1, 2006
Words:186
Previous Article:To have and have not.
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