Minerals’GDP in Colombia, crude oil sector the main one

Colombia minerals’ GDP showed an increase as a share of total GDP. This share went from 5.5% in 2000 to 7.9% in 2010. The main minerals that took room in minerals’ GDP as whole were crude oil with 66.5% in 2010, coal with 19.7%, gold with 4.6% and natural gas with 2.9%.  Although these minerals contribute marginally in total GDP, when Colombia run out of them ,there will be a high social costs in terms of unemployment. For crude oil this cost will be around 14 thousand places accounted in 2012 and for whole sector will be 283 thousands, of course the short run problem is crude oil scenario, for the others minerals we have enough reserves still. 

Author: Humberto Bernal,  

Economist

e-mail: zhumber@gmail.com

It can be download @

Colombia Gross Domestic Product (GDP) reached US$286.5 billions (nine zeros after point) in 2010 at current exchange rate. It meant a GDP per capita of US$6.366,68 in 2010. Recently there have had lot of attention about how minerals contribute to GDP in Colombia. Figure 1 shows how minerals’ GDP is distributed. Left axes shows GDP for each mineral as a percentage of total minerals’ GDP. For instance Coal’s GDP showed a share of 13.3% in total minerals’ GDP in 2000, crude oil’s GDP shared with 73.1% of total minerals’ GDP in 2000, gold’s GDP shared with 3.6% and natural gas shared with 3.4%. This statistics showed a marginal change last ten years, coal’s GDP increased to reach 19.9%, crude oil’s GDP decreased to reach 66.5%, gold’s GDP increased to reach 4.6% and natural gas’ GDP decreased to reach 2.9%. 

The right axes shows how much minerals’ GDP shared in total GDP in Colombia. These seven minerals shared with 5.5% in 2000 and 7.9% in 2010, therefore minerals are getting room in total GDP in Colombia.  As I pointed weeks before, minerals’ GDP is marginal in the total GDP but these seven sectors give work to 283 thousand people, therefore colombian government have to be aware when they run out, there will be a high social cost evaluated in unemployment mainly. 

This type of figures are interested due to one can get how much of each mineral sector contributes to total GDP. For instance coal’s GDP shared with 1.55% of total GDP in Colombia in 2010, to make this calculation one has to multiply 0.197*0.079*100 and it is done. For crude oil’s GDP this share was 5.26%, gold’s GDP shared with 0.37% and natural gas’ GDP shared with 0.23%.

Figure 1. Minerals’ GDP in Colombia by main component

2000 - 2011

(percentage %)

Left: Minerals’ GDP by component as a share of total minerals’s GDP (%).

Right: Total minerals’ GDP as a share of total GDP in Colombia (%).

Source: Bureau of statistics and own calculations.