1. JP Morgan projects that the Colombian economy will grow 9% in 2021 and 4% in 2022 

The estimate was made considering that the economic activity in July had better results than expected by the market. However, the revised projection in 2022 is subject to the political effect that the presidential election can have on economic indicators.

After the National Department of Statistic (DANE) published the results of the Indicador de Seguimiento a la Economía for July 2021, JP Morgan revised upwards its projection of Colombia's economic growth for 2021 and now forecasts that GDP will be 9%.

According to the firm, the revision was made considering that productive activity in July had better results than expected by the market. Recovery has been driven by the tertiary sectors, which have generally led the economy, followed by secondary sectors, still lagging. The primary sectors continue to be subdued overall.

The estimate for all of 2021 assumes a slowdown in the pace of growth in the last quarter of the year to 3%. Still, the economy would grow at a rate of 9%, which is higher than the previous estimate of 7.5%.

The 2022 GDP estimate was also revised upward, from 3.6% to 4%. In this scenario, the firm assumes that next year's presidential elections do not coincide with any market stress and that the election outcome. However, this outcome is likely to change.

2. Colombia is the first Latin American country to issue sovereign green bonds in local currency

The Ministry of Finance auctioned $750.000 million in these TES that seek to finance projects in clean transportation, water management, among others. All in the name of achieving the country’s environmental and climate commitments.

The Ministry of Finance yesterday auctioned $750 billion in green TES maturing in 2031, making Colombia the second Latin American country to issue sovereign green bonds; and the first to do so in local currency. This, considering that in the region only Chile has made these issues, but in dollars and euros.

The demand during the day demonstrated the appetite of investors for this type of issuance, as purchase offers were received for $2.3 trillion, a figure that is 4.6 times the amount initially called ($500,000 million).

In addition, the cut-off interest rate of the auction was 7.556%, a level that is slightly lower than that of conventional TES transactions maturing in 2031 (7.630%).

The proceeds from the issuance will help finance projects that contribute to meeting the country's environmental and climate commitments, such as reducing greenhouse gases and achieving carbon neutrality by 2050.
 

3. Colombian ports add US 146 million in investments

More than 15 thousand direct and indirect jobs have been generated in 63 port terminals due to the millions of dollars invested in them. This will considerably enhance Colombia’s maritime commercial capabilities.

The National Infrastructure Agency (ANI) said that 63 ports concessioned by the entity have executed investments for US 146 million in order to improve their infrastructure and to be more competitive internationally.

Specifically, investments in the order of US$20.4 million were made in 2018; US$76.7 million in 2019; another US$22.4 million in 2020 and, as of the first half of 2021, US$26.5 million.

The Minister of Transportation assured that "important investments have been planned to improve infrastructure in equipment and enhance the efficiency of port terminals, in order to make Colombian terminals more competitive worldwide".

It is important to specify that ANI manages eight port areas, with their respective companies: they are located in Bolívar, La Guajira (3), Santa Marta and Ciénaga, San Andrés, Golfo de Morrosquillo, Urabá, Buenaventura and Tumaco. Since August 2018, more than 15 thousand direct and indirect jobs have been generated among the 63 port terminals.