Colombia adjusted its forecats of the Central National Government´s fiscal deficit to 8.9% of GDP, while reducing its projection on the performance of the economy to a contraction of 6.8%. The Government had a fiscal deficit target of 8.2% of GDP for 2020 and expected a contraction of the economy of 5.5%. In 2021, the Government expects the economy to grow 5% and a fiscal deficit of 7.6% of GDP. The previous estimate contemplated a growth of 6.6% and a deficit of 5.1% of GDP.
The Colombian Central Bank reported that direct foreign investment as of October 2020 was $ 5,804 million, a decrease of 27.7% compared to the same period in 2019 when it was $ 8,032 million. Foreign direct investment in oil, hydrocarbons and mining fell the most, registering a fall of 43.1% from $ 5,862 million to $ 3,335 million.
Industrial production fell 3% year-on-year in September, less than the 10.3% drop in August, the National Statistics Department (DANE) revealed. Retail sales also reported an improvement in September with a year-on-year drop of 0.8%, less than the 17.1% drop in August. Between January and September, industrial production accumulated a fall of 10.6% and retail sales 11.2%, according to the DANE report.
Avianca Holdings - which went into restructuring after declaring bankruptcy under U.S. Chapter 11 law in May - recorded a net loss of $283.5 million in the third quarter, compared with a loss of $40.1 million in the year-earlier period. Income during the three months ended Sept. 30 fell to $206.9 million, down from $1.2 billion in the third quarter of 2019. Avianca’s scheduled passenger operations have been affected (by the coronavirus pandemic) since mid-March, reducing its consolidated revenues by more than 73%.
Colombian coal mine Cerrejon on Friday requested the Labor Ministry convene an arbitration tribunal to solve a dispute with its largest workers' union and lift a more than 70-day strike. The strike began on August 31 after Cerrejon and union Sintracarbon were unable to reach agreements over pay rises, as well as health, education and living benefits for workers. Cerrejon has so far not given any estimates about the impact of the strike on its production or income, though Glencore cut its coal production guidance for the year by 5.7% due to the strike.