For the Banco de la República, the scenario for 2020 is more dramatic than the government's vision. The central bank expects a drop of 8.5% in the national GDP, while the Ministry of Finance is more optimistic and expects a drop of 5.5%. Despite the economic recovery that has already begun and will continue next year, the Issuer continues to see unemployment rates above 14%. For 2021, the Central Bank sees a recovery of 4.1%, against the Government´s forecasts of 6.6%.
Colombia's central bank will hold the benchmark interest rate steady at its October meeting, ending seven consecutive months of cuts which took borrowing costs to a historic low, analysts said in a Reuters poll on Thursday. All 13 analysts agreed the seven-member board will hold the interest rate at 1.75% at its Oct. 30 meeting, in order to focus its attention on potential future inflation control after months of efforts to buoy up the economy. Consumer prices were up 0.32% in September, above market expectations, as the economy began to recover after more than five months of a national lockdown meant to stem coronavirus infections.
Colombian conglomerate ISA said on Thursday it has acquired a road concession in the country’s north for more than $528 million. The 146 kilometer Cartagena-Barranquilla concession connects major Caribbean cities. The acquisition was made through subsidiary ISA Intervial Chile, one of the biggest interurban road operators in Chile. ISA plans to invest $12.5 billion through 2030, including some $2.9 billion in roads.
Chinese Zijin Continental Gold will inaugurate today its Buriticá gold Mine. The project demanded $ 610 million in investment in its construction phase and has become a bastion of Chinese investment In colombia. With 14 years of expected mining exploitation and more than 3.7 million ounces of gold in reserves, it will bring in $ 792 million in taxes and royalties and will create 2,318 jobs, according to Zijin Continental Gold estimates.
The Minister of Agriculture and Rural Development, Rodolfo Zea Navarro, announced that the European Union will donate ca $25 million to support social programs in rural areas of Colombia. The purpose of this contribution is to co-finance government initiatives to support Colombian campesinos, especially women.
Clean energy vehicles made a major breakthrough in the pandemic. This year 3,014 hybrid and electric cars were sold in Colombia. Hybrid Electric Vehicles (HEVs), plug-in hybrid electric vehicles (Phev), and battery electric vehicles (BEV) started the year with a growth of 382.9% compared to January 2019, and up to september, except for April, had growth of two and three digits.
Colombian coal mining firm Cerrejon and its main union Sintracarbon have begun direct negotiations to end a strike that has lasted for 52 days so far. The strike has prevented around 56,000 t/d of coal, or 2.9mn t, from being exported.