The National Administrative Department of Statistics (Dane) provided the details of the Consumer Price Index (CPI) in November. The Index was at -0.15% for november, while annual inflation reached 1.49%. The impact of the day without VAT was the main reason for observing a negative variation in the data. This effect is evidenced in the clothing and footwear division, a category that had a variation of -3.71% in which men's, women's and children's clothing had discount days last month.
Moody´s updated its fiscal forecasts for Colombia and now foresees that the General Government deficit will end 2020 at 9.7% of GDP, previously it was 9.2%. The firm's analysts are also more pessimistic about the fiscal deficit forecast for 2021. Now they see it at 7.6% of GDP when in their August report they expected it at 5.1% of GDP. The agency now sees a growth of the local economy at levels of 4.8% in 2021, being less than the 5.3% projected before.
India’s ONGC Videsh (OVL) has announced a significant oil discovery in its onshore block CPO-5 in Llanos Basin, Colombia. OVL said that the well “during initial testing produced oil of 35.2 degrees API in commercial quantity @ 6,300 BOPD, with negligible BSW of 0.11%”. The block CPO-5 is operated by OVL with a 70% stake along with its Partner Geopark, an independent oil and gas company focussed in Latin America, with a 30% stake.
Moody's Investors Service changed the outlooks to negative from stable and affirmed the Baa2 long-term issuer (Global Scale, local currency) and senior unsecured debt ratings (Global Scale, foreign currency) of Bogota, Distrito Capital (Colombia) and the Baa2 long-term issuer ratings (Global scale, local and foreign currency) of the City of Medellin. The baseline credit assessments (BCA) for both cities were also affirmed at baa2. The change in the outlooks to negative from stable for Bogota and Medellin reflects the change in the outlook on Colombia's sovereign rating (Baa2 negative), taking into account the strong economic and operational links that these cities have with the central government and the close oversight that Colombia's central government exerts over the country's regional and local governments.
The pandemic caused the sale of essential products such as bread to spike during isolation. Fernando López, general manager of the company in the country, indicated that they plan to make an investment of $ 17 million dollars to strengthen product lines these consumer trends increased, and to develop a better platform to serve customers. As a novelty in the pandemic, they launched their frozen bread, with which they hope to sell $ 1.1 million in its first year.
The Ministry of Mines and Energy in Colombia has released a draft resolution with the purpose “to adopt the guidelines and requirements to promote exploration and investigation of the subsoil and exploitation of the Geothermal Resource for the generation of electrical energy.” The document proposes a framework and guidance on technical and environmental requirements, as well as providing recommendations for contractual terms.