Foreign Investment in Bogotá surpassed $650 million by the third quarter of 2024, showcasing the city’s growing role as a hub for international business. The United States, with a share of 24.6%, emerged as the leading Foreign Direct Investment (FDI) source in Colombia’s capital, followed by Spain with 12.3% and Mexico with 9.2%. These findings are part of the latest report from Invest in Bogotá, which details the performance of new and expansionary FDI projects in the city through September 30, 2024.
According to this report, foreign Investment in Bogotá exceeded $650 million during the first three quarters of 2024, representing an impressive growth of 30.6% compared to the same period in 2023, when the figure stood at $500 million. Despite global economic challenges, this significant increase underscores the recovery and expansion of foreign investment activities in Colombia’s capital.
Bogotá accounted for 65 new and expansionary investment projects out of the 161 projects registered nationwide. This marked a 29.8% increase compared to the same period in 2023, highlighting the city’s growing appeal as a hub for international business. The United States retained its position as the top investor, contributing 24.6% of total foreign investment. Spain followed with a 12.3% share, and Mexico ranked third with 9.2%. This dominance of American, Spanish, and Mexican investors illustrates foreign Investment in Bogotá as a key driver of the city’s socioeconomic reactivation.
Employment and Project Trends
Despite a 7.1% decline in the number of investment projects compared to the same period in 2023, the monetary value of these investments and the number of jobs created showed robust recovery. Investment volumes grew by 30.6%, while employment generation increased by an impressive 41% during the third quarter of 2024, compared to the same period in the previous year.
Isabella Muñoz, Executive Director of Invest in Bogotá, emphasized the significance of these developments, stating, “This trend demonstrates clear signs of recovery. It is fantastic news for our city and showcases how Foreign Direct Investment is becoming a driving force for socioeconomic reactivation and development in our region.” Her statement underscores the transformative impact of foreign Investment in Bogotá on the city’s economic landscape, particularly in post-pandemic recovery efforts.
Latin America and Global Investment Trends
Globally, new and expansionary FDI projects experienced a 10.7% decline by the third quarter of 2024 compared to the same period in 2023, as reported by fDi Markets. This downturn was reflected across most regions, with Africa registering the steepest drop at 38.9%. Western Europe followed with a 25.8% decline, while Emerging Europe and Latin America, and the Caribbean saw decreases of 22.0% and 12.4%, respectively. The Middle East experienced a smaller contraction of 5.6%, and the Asia-Pacific region registered a modest decline of only 0.3%.
In contrast, North America was the only region to report significant growth, with a 21.6% increase in FDI projects compared to the third quarter of 2023. This growth was primarily driven by increased real estate investments, particularly leasing and rental projects initiated by Regus in the United States.
Latin America: Challenges and Bright Spots
Within Latin America and the Caribbean, six of the top ten FDI-receiving countries experienced declines in investment projects. Costa Rica, Panama, and Uruguay led these negative trends, with project reductions of 55.3%, 52.0%, and 27.3%, respectively, compared to the same period in 2023. These contractions highlight the broader economic challenges facing the region.
Despite this general downturn, Peru emerged as a notable exception. The country recorded project growth, fueled by retail sector investments in food and beverages, textiles, and consumer goods. Additionally, Peru attracted two significant extraction projects valued at over $1.5 billion, showcasing its potential to attract high-value foreign investments.
Implications for Bogotá
Bogotá’s strong performance starkly contrasts broader regional and global trends, underlining its resilience and strategic importance as a destination for foreign investors. The city’s ability to secure a growing share of investment projects and generate employment opportunities positions it as a critical player in Colombia’s economic development and a beacon of recovery in Latin America.
As the year progresses, the continued focus on promoting Bogotá as a competitive and attractive investment destination will likely drive further growth. Foreign Investment in Bogotá bolsters the local economy and strengthens ties with key global markets, reinforcing its status as a leading hub for foreign direct investment in the region.
Summary
Foreign Investment in Bogotá surpassed $650 million by the third quarter of 2024, with the United States leading as the primary investor, followed by Spain and Mexico. This marks a 30.6% increase compared to 2023, highlighting Bogotá’s recovery and growing appeal for international investors. Despite global economic challenges and a regional decline in FDI projects, Bogotá accounted for 65 of Colombia’s 161 new and expansionary investment projects, showcasing its resilience. Investment growth also translated into a 41% rise in employment. With its strong performance amid regional and global downturns, Bogotá reinforces its position as a critical economic hub in Latin America, driving socioeconomic reactivation and strengthening ties with international markets.