[Economics] Without oil, the economy would contract 3.3%: how viable is it?

[#Wittels-]

See how much Colombia would stop receiving if it left oil extraction as proposed by Gustavo Petro.

In an interview with EL TIEMPO, the presidential candidate Gustavo Petro proposed that Colombia abandon oil extraction, a situation that could lead to the country's economy contracting 3.3 percent.

(Criticism of Petro for the idea of stopping oil exploration in the country).

In addition, several departments, which derive a large part of their income from this activity, would be in serious trouble.

Only for 2022 the Nation expects revenues of 7.5 trillion pesos from oil extraction, according to the Medium-Term Fiscal Framework (MFMP), but with current crude prices, which are around 80 dollars per barrel in international markets, and the dollar, these revenues could increase up to 500,000 million, according to calculations by some experts.

In Colombia, hydrocarbons contribute 3.3 percent of the gross domestic product (GDP), while oil represents 40 percent of what Colombia sells to the world.

 

(Crude: finds add 102 million barrels in reserves).

Although there is consensus that the country must advance in a transition towards the use of cleaner energies, cutting off the contracting of oil exploration, as proposed by the candidate Petro, generated various comments about the economic and legal implications for the country, among others, of said proposal.

In addition to the economic implications for the Nation, the effects at the regional level are enormous, insofar as minerals have a great weight in the GDP of various departments of the country, where oil production plays a large role.

For example, 47.25 percent of Meta's GDP depends on minerals, including oil. But it is not the only one, in Casanare that contribution reaches 42.44 percent; in Arauca. 37.85 percent; in Putumayo. 23.41 percent; in Huila, 6.05 percent; and in Santander, 3.62 percent, according to figures from the National Administrative Department of Statistics (Dane).

During the closing of the IV Oil and Gas Summit, Socio-economic reactivation: a national commitment, last week, President Iván Duque highlighted the contributions of the hydrocarbon sector to the development of the country, and its importance in exports, tax revenues, royalties , among other contributions that have served to leverage social and environmental investment programs in Colombia.

 

(What are the 32 areas that Colombia has for oil development).

He indicated that: “The world cannot continue to fall into absurd demonizations, derived from disinformation, when it comes to addressing sectors that affect economic activity and the social transformation of our countries; this sector generates well-being and is not an enemy of development ”, he insisted.

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Link; https://www.portafolio.co/economia/sin-petroleo-colombiana-se-contraeria-3-3-558804