Economic Sectors Of Colombia: Characteristics And Data
What are the economic sectors of a country? What do they have to do with the economy? In this article we reveal these issues to you, and in addition, we explain in detail the economic sectors of Colombia
As we will see, we find the sectors according to the classic division (primary, secondary and tertiary) and the sectors classified by their type of economic activity. In total we are talking about 9 sectors, which we will explain below.
First of all, remember that Colombia is a country in South America, whose capital is Bogotá Its population in 2019 is more than 48 million inhabitants.
Regarding the topic at hand, the economic sectors of a country, territory or State are those divisions of its economic activity. According to the classic division of the economy, Colombia’s economic sectors are divided into three: the primary sector (agricultural), the secondary sector (industrial) and the tertiary sector (service provision).
However, depending on the type of economic activity, from these three sectors there are nine (three of which are the ones already mentioned). The six “new” sectors are: the transport sector, the financial sector, the commerce sector, the construction sector, the mining and energy sector and the communications sector.
Different activities are derived from each of these economic sectors, which are specialized and independent of each other. Thus, we will first review the three economic sectors of Colombia according to the classic division, and later we will comment on the remaining six, according to their economic activity.
It is important to say first, however, that the six sectors classified according to their economic activity are part of one of the three initial sectors (primary, secondary or tertiary), as we will see throughout the article.
Some figures
Before explaining the different economic sectors of Colombia, however, let’s mention some figures of the country’s economy (specifically, its different sectors).
According to DANE, which is the National Administrative Department of Statistics, 48% of the country’s economic establishments correspond to businesses, 40% to the provision of services (tertiary sector) and 12% to industry (secondary sector).
Regarding GDP (Gross Domestic Product), it is an indicator that countries use to measure their economic wealth. It is based on a mathematical formula, and each country has its GDP.
According to DANE, in the case of Colombia, the contributions of Colombia’s economic sectors to the GDP are as follows, in order from highest to lowest: financial sector (20%), services sector (15.3%), commerce (12%), industrial sector (8.3%), mining and oil sector (8%), construction sector (6.9%), agricultural sector (6%) and electricity and gas sector (2.6%).
Although it is true that these data may have changed a little today. Now yes, We are going to talk about the economic sectors of Colombia, according to the classic division and according to the type of activities that make them up
According to the classical division of economics
According to the classic division of sectors already mentioned, We find three large economic sectors of Colombia , which in turn bring together specialized and independent activities. These three are next.
1. Primary sector
The primary sector includes basic production Also called the agricultural sector, it encompasses those economic activities that are related to obtaining goods and products that come directly from nature. That is, it is the “direct” product, which has not obtained any conversion.
Agriculture is the main activity carried out within this sector (agricultural sector), and is defined as the set of knowledge and tools necessary to obtain plant products through cultivation.
2. Secondary sector
The second of Colombia’s economic sectors according to the classic division is the secondary (industrial) sector. The main characteristic of this sector is that it includes all those industrial procedures that have the objective of transforming the raw materials obtained from the first sector (agricultural).
The final product of these transformations is one that can now be consumed. Within this sector we find economic activities such as: mining, construction, textile activities, etc.
3. Tertiary sector
The third economic sector is the provision of services, and includes activities related to this purpose. Thus, it includes activities that offer/provide some type of service to the community and companies (that is, to people in general).
Some of the activities that we find in the tertiary sector are: medicine, teaching, commerce, tourism, telecommunications, finance, etc.
This is an important sector for the economy to flow. Thus, its correct functioning is essential so that the economic sectors of Colombia already mentioned are more productive.
According to the economic activity developed
Now we are going to see the six main economic sectors of Colombia according to their type of economic activity We have already mentioned some of them throughout the article, because they are part of one of the three initial sectors.
1. The transport sector
The transportation sector includes the mobilization of different merchandise, whether by land or air. For its operation to be correct, it is important that the road infrastructure is adequate.
On the other hand, thanks to low-cost airlines in Colombia, more and more Colombians decide to travel.
2. The financial sector
The financial sector includes the provision of money, transactions, commercial exchange, etc. In short, finances. This sector in Colombia registered an annual growth of 2.7% in 2016. This year there was talk of a Colombian asset of $1,346.6 billion.
3. The commerce sector
Another of Colombia’s economic sectors, according to its activity, is commerce. Specifically, in Colombia this sector has occupied the fourth position in GDP for 4 years (after agriculture, manufacturing industry and finance). In Colombia, in recent years, the services with the highest turnover were hotels, bars and restaurants.
4. The construction sector
The construction sector is part of the industry (secondary) sector. If we talk about figures, the DANE (National Administrative Department of Statistics) reveals that its growth in Colombia went from 4.18% (m2 built) to 4.56% (m2), from 2015 to 2016, respectively.
5. The mining and energy sector
The next of Colombia’s economic sectors is mining and energy. This is a sector that suffered various crises or “falls” in Colombia, the first in 2007, and the second in 2016, as a consequence of the decline in oil prices.
6. The communications sector
The communications sector is in ninth position on the list of economic activities that contribute the most economic benefits to the gross domestic product (GDP). The rise of telephone companies in Colombia is undeniable.
On the other hand, two important advances in this sector are the incorporation of broadband for homes and 4G technology for mobile phones.
