BOGOTA (Reuters) - Foreign direct investment in Colombia fell 5.1 percent in the first quarter versus the same period a year ago, preliminary central bank data showed on Monday, while inflows destined for investment in financial assets doubled.
The Andean nation received $3.64 billion from January to March, down from $3.84 billion in the same three months of last year, the data showed.
Investment in the oil and mining sector, by far the largest recipient of foreign investment, was almost unchanged at $3.05 billion, accounting for 84 percent of the inflows.
The overall dip in foreign investment was caused by a reduction in inflows to what the central bank lists as ‘other sectors’, all those outside of the oil and mining sectors. They received 25 percent less investment at $589 million.
Investment in Colombia’s capital markets doubled in the quarter from last year to $2.65 billion after J.P. Morgan announced it would raise the weighting of Colombian government bonds in two of its indexes. Of that amount, $2 billion was in March, the month J.P. Morgan announced its decision.
Analysts expect new inflows of foreign cash to invest in bonds and stocks to bring a further $4 billion to $10 billion between now and next year.
Reporting by Peter Murphy; Editing by Eric Walsh