More than 60% of Colombian business owners are considering leaving the country amid mounting concerns over economic instability and security under the administration of President Gustavo Petro, according to a survey released by Fenalco, the country’s national federation of commerce.
The survey, conducted during Fenalco’s 2024 National Congress of Business Traders in Barranquilla, highlights growing dissatisfaction among private sector leaders with Petro’s economic policies. Business representatives gathered in the coastal city cited rising interest rates, persistent inflation, and the elimination of pro-business measures such as Sales Tax-free shopping days as key factors eroding confidence in Colombia’s business climate.
“The private sector has been under immense pressure since the pandemic, and while the world economy has shown signs of recovery, many Colombian companies are still struggling,” said Jaime Alberto Cabal, President of Fenalco. “Now, the current administration’s policies are making it harder for businesses to get back on their feet.”
The Fenalco survey revealed a startling statistic: more than 60% of business owners have considered relocating their businesses abroad over the past two years. High levels of uncertainty, combined with what many perceive as a lack of clear economic strategy from Petro’s government, are driving negative sentiment. More than 600 businesses, primarily small and medium-sized enterprises (SMEs), responded to the survey, underscoring the widespread concern across various sectors.
“Economic opportunities are drying up for millions of Colombians,” the survey noted. Since 2022, more than 1 million Colombians have emigrated in search of better prospects. Former President Álvaro Uribe Vélez, addressing attendees at the Fenalco congress, predicts that two million more Colombians could leave the country under Petro’s watch, with many having no plans to return.
“People are leaving due to the uncertainty and lack of opportunities,” Uribe said, adding that the growing exodus has resulted in a drop in unemployment but a rise in remittances. Uribe also sounded the alarm on public safety, stating that the country recorded over 13,000 homicides last year, with more than 7,500 registered by mid-2024. The conservative politician also highlighted an increase in kidnappings, extortion, and the assassination of social leaders.
The Fenaclo survey also reflects stark pessimism regarding the country’s future economic outlook. Nearly 68% of respondents described the current situation as “bad” or “terrible,” with 37% stating that Colombia’s economy has deteriorated over the past year. Only 4% of respondents described the economic environment as “good,” and just 1% said it was “excellent.”
The country’s private sector, once seen as a driver of economic growth, has been hit hard by government reforms and rising insecurity. The Petro administration has vowed to strengthen ties with the private sector to spur economic recovery, but business leaders say they are still waiting for concrete plans from the leftist administration. “The government’s intention to partner with us to revive the economy is appreciated, but what we need now are clear policies that provide a pathway to recovery,” stated Cabal. “Instead, businesses are dealing with rising costs and a tougher business environment.”
Insecurity remains a pressing issue for businesses across Colombia, with entrepreneurs citing increased extortion and violence as major impediments to growth. Nearly 43% of business owners surveyed expect to reduce their workforce by the end of the year, while 52% expect no change in employment levels. Only 5% foresee any growth in job creation.
Business leaders have called on the government to address Colombia’s growing security challenges. About 24% of those surveyed said improving public safety should be a top priority, while 20% urged the administration to create a recovery plan in collaboration with the private sector. Another 17% called for a halt to new tax reforms, which they say have already burdened businesses.
Governors attending the Fenalco congress echoed concerns about the deteriorating security situation, especially in rural areas. Adriana Magali Matiz, governor of Tolima, warned that the government’s “total peace” strategy and failed ceasefires with illegal armed groups, including ELN, have strengthened criminal organizations. “After 15 years, illegal roadblocks have returned,” Matiz said, adding that regional security forces are stepping up anti-extortion efforts to combat the violence.
In Valle del Cauca, Governor Dilian Francisca Toro has requested the establishment of a specialized high-mountain battalion and additional police to crack down on drug trafficking and illegal mining. Retired General Juvenal Díaz, governor of Santander, also called for increased investment in technology centers and improved mobility for law enforcement to help restore order in the country.
As the Petro government enters its third year, many in the private sector remain unconvinced that the administration can turn the tide on the economy and security. Without a significant shift in policy, the exodus of business owners could accelerate, further complicating Colombia’s long-term economic perspectives.
