The Board of Directors of the Banco de la República unanimously decided to maintain its interest rate at 1.75%, with which the indicator completes two consecutive months without changes. Although inflation expectations for this year remain below 2%, in 2021 a growth in the cost of living of Colombians is expected close to 3%, which is the goal of Banco de la República.
President Iván Duque announced that Colombia, by 2030, expects to reduce greenhouse gas emissions by 51%. The strategy to reduce greenhouse gases is part of the Nationally Determined Contribution of the Government of Colombia for the period 2020-2030 to comply with the Paris Agreement. This plan incorporates two other components: adaptation to climate change and low-carbon development.
Colombia´s central bank announced that workers' remittances to Colombia reached $ 661.4 million in October, a 14.4% YoY growth. According to the issuer's records, these remittances represented just over $ 578.2 million in October 2019. Remittances in the January-October period amounted to $ 5,612.9 million.
Colombian president, Iván Duque, announced that the government will allocate $11 mn to capitalize the state airline Satena, to “guarantee its operation and also absorb a large part of the shock we are experiencing this year, which has been so difficult". Satena connects 692 municipalities (62% of the country), in 20 departments.
According to a report by industry associations ANDI and Fenalco, 657 hybrid and electric vehicles were registered in Octobe, a 163.9% YOY growth. EV and hybrid vehicles are forecast to 5,000 units at the end of 2020. Hybrids have 89.8% of the market of alternative vehicles, while electric ones remain with 10.2%.
The regional economic advisor of the Andean Group Countries Department of the Inter-American Development Bank (IDB), Osmel Manzano, said this Thursday that the IDB projects that Colombia's GDP will fall 6.8% in 2020, higher than its initial estimate of -5%. The IDB projection came after the Colombian Ministry of Finance also worsened its estimate for 2020 from -5.5% to a range between -7% and -8%. Recently, statistics office Dane reported that Colombia's GDP between July and September fell 9%.
Union for Infrastructure (UPI), an alliance between Sura and Credicorp, plans to capture up to $ 550mn from institutional investors (pension funds, insurance companies and university funds) that have a long-term appetite, as well as multilaterals. Investments in the fund will be tied to inflation and their objective is to deliver a return -before commissions- of CPI + 7.50% -8.50%, explained UPI chief Mario Dib. The first fund by UPI was launched five years ago to capture $ 387mn, with key investors being private pension fund managers and insurers.
Colombian Businesses association ANDI released the results of the Joint Industrial Opinion Survey, which highlights that industry production decreased -10.1% between January and September, compared to the same period in 2019. According to the report, in addition to the drop in production, sales fell -9.9%. At the sectoral level, all manufacturing activities continue to register negative rates in production and sales.
The Ministry of Finance of Colombia announced that the auction program for Treasury Securities (TES) 2020 ended “satisfactorily” with the bid for $269.5 million in maturities for 2027, 2034 and 2050. This auction received offers for $ 525 million, 2.96 times the amount initially called. "Solid demand enabled the activation of 50% over-allotment clauses, $89.8 million additional to the initially auctioned amount of $179.7 million," said the Government.
Colombia's oil production fell 14.8% YoY in October to 751,374 barrels per day (bpd), the Ministry of Mines and Energy reported Thursday. In October of last year, production was 882,677 bpd. Compared to last September, there was an increase of 0.28%. Average crude oil production between January and October reached 785,526 barrels per day, a drop of 11.4% compared to the same period in 2019, when it stood at 886,777 bpd. Meanwhile, natural gas production in October fell 1.8% to 1,091 million cubic feet average day (mpcpd), compared to 1,112 mpcpd in the 10th month of 2019.