Macroeconomic data and projections for Colombia for 2021

This increased projection for GDP of Colombia has been made due to the recovery and reactivation in the different economic sectors of Colombia, having the private sector as a principal agent, producing 105% of the consumption in a pre-Covid stage. 

This increase in consumption has been derived to the savings that 2020 allowed for the private sector and Colombian homes, which has been used for 2021. 

It is projected that for 2022 and 2024 the consumption will still provide a major role in the GDP, having a 4% increase for 2022, and a similar one for 2023. The expectations for 2022 are placed over services rendering in entertainment, tourism and airline sectors, taking some distance from goods, but for 2023 gaining dynamism between these two concepts. 

Regarding employment, the projections are still considering that the pre-covid status will not be reached yet but will be gradually increase as soon the recovery of different sectors continues. 

Projections from Credicorp Capital over inflation has been made to be stable in the short term due to the posture of the Central Bank.

Regarding the balance of trade for Colombia, the deficit has doubled over the las year according to the DANE (Administrative National Department of Statistics), reaching US $1,624.1 millions up to August 2021, as consequence of exportation of US $3,318.1 million, and importations of US$4,942.2.
In importation, the manufacturing sector was a predominant agent, being followed by farming, food and beverages, fuels and extractive industries, being bought to countries like China, United States, Mexico, Brazil, Argentina, Germany and France.

In foreign investments, the minister of Commerce, Industry and Tourism has announced that Colombia’s has a goal of collecting US$9.800 million in order to attract employment and development in the Colombia Investment Summit taken place in Bogotá last October 20, 2021. 

It is aspired to obtain 49 investment announcements of business in agroindustry, 4.0 industry, metal-mechanic, chemical and health science sectors, as well as implementing an Ally-shorting strategy to relocate multinationals offices in Colombia to strengthen bonds with consumers in the country.  

The Ministry of Commerce, Industry and Tourism has published a draft of decree for the facilitation of Direct Foreign Investment in Colombia

The draft of decree published by the Ministry of Commerce, Industry and Tourism, which is open for comments by the public, looks forward to regulating the Investors defender and the Unique Investment Window (“VUI” by its acronym in Spanish) as part of the actions to attract, facilitate and retain foreign investment for local production. 

Regarding the Investors Defender, it will provide aid in the follow-up of difficulties encountered by foreign investors before local authorities and regulatory affairs, as well as allowing a preemptive detection of liabilities and even international claims. 

The VUI will be and institutional point of contact for the investor to centralize the relations with local authorities in Colombia during the investment procedure, being a broker or intermediary that understands its concerns before this parties and allows the investors to file different procedures before these authorities. 

Apart from these important aspects, there are studies to include fiscal incentives for important investments, and a promotion for e-commerce and the new regime of customs-free zones.

Colombia is issuing new green Public Debt Securities (TES)on October 27, 2021

Havin available up to COP $2 billion to issue green TES, the Ministry of Treasury will issue a second financing round of green TES upcoming October 27, 2021 for at least COP $650.000 million.

This second auction of green TES will have as term March 26, 2031, with a coupon of 7%, and it will be called as a noncompetitive auction. As well, this auction will have as conditions for allocation, the following: 30% in relation to the received offers and auctioned sums of 2.0 ratio, and up to 50% with a 2.5. ratio.

This TES are part of international good practices regarding environmental benefits, financial sustainability, transparency and responsibility with investors.