Colombia, among the countries where it is more complex to do business

According to Global Business Complexity Indexproduced by TMF Group, Colombia It is among the 10 countries in the world where it is more complex to do business.

According to the index, the reasons why it is very difficult to negotiate in the country are bureaucracy and political factors.

(‘Rare for an airline that is on the ground to fly again.’)

“When foreign companies enter Colombia, there can be an initial struggle to understand how certain laws and regulations work. Colombia is a highly regulated jurisdiction, so adhering to its many laws is an essential aspect of the operation.“, detailed in the study.

The document also elaborates that, in the last year, the situation has been more complex due to the arrival of Gustavo Petro to the presidencyTherefore, as specified in the report, “has created tensionn” politics for being from a party with leftist ideas.

(Leaders of the left show support for Petro through a letter).

Similarly, it is pointed out that the tax reformapproved in December 2022,”it will bring complexity for organizations that operate within the jurisdiction, since they will have to adapt to changesyes”.

Finally, the devaluation of the peso against the US dollar and inflation are other factors that can be considered negative for those seeking to do business in the country. “This meant that some organizations stopped their plans to incorporate in 2022. At the beginning of 2023 the climate became more stable, so companies are resuming their plans to enter the country.“.

(Colombia is experiencing a water crisis, there are regions without the liquid).

in the study 78 jurisdictions were analyzed representing 92% of the world’s Gross Domestic Product (GDP) and 95% of global net foreign direct investment (FDI) flowsby comparing 292 indicators tracked annually, while providing data on important aspects of trading, including onboarding timelines, payroll and benefits, standards, regulatory framework, and tax rates .

Likewise, it is specified that confidence in the economic stability of the jurisdictions for the next five years has been falling. However, confidence in political, geopolitical and social stability has remained mostly stable.

(Exporters union: ‘Government announcements would affect investment’).

“Since the start of the war in Ukraine, jurisdictions have observed supply chain disruptions and rising energy prices, as well as barriers to international trade. Many jurisdictions that depended on Russia and Ukraine for exports such as grains and oil were severely affected, increasing inflation and showing that the impacts of the war are global.“, explained in the study.

BRIEFCASE