Colombia foreign investment falls, capital inflows more than double
BOGOTA, June 16 (Reuters) - Foreign direct investment in Colombia fell 9.2 percent to $6.54 billion in the first five months of the year, compared with the same period in 2013 because of lower inflows into oil and mining, central bank data showed on Monday.
Capital inflows into financial assets more than doubled from the same period a year ago to $4.58 billion, the bank said.
The capital increase was primarily due to the March decision by J.P. Morgan to raise the weighting of Colombian government bonds in two of its indexes. Analysts expected new inflows of foreign cash to invest in bonds and stocks, bringing a further $4 billion to $10 billion between now and next year.
Investment destined for the oil, carbon and mining sectors contracted 8.1 percent to $5.47 billion during the first five months through May, accounting for 83.6 percent of foreign investment.
Analysts said lower investment in energy sectors was due to a decline in international demand for raw materials, partly because of China's economic slowdown. (Reporting by Nelson Bocanegra; Writing by Julia Symmes Cobb; Editing by Jeffrey Benkoe)
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