Moody has warned Colombia's credit rating outlook after the government withdrew its tax reform from Congress. According to Renzo Merino, senior vice president and analyst at Moody's Colombia, this situation increases uncertainty about the government's ability to consolidate its fiscal balance in the medium term. It also affects other socioeconomic concerns, increasing the need to expand the current budgetary capacity to provide greater social programs to the population. Moody's said it would reassess some of the items it considered last year to give the current negative outlook for Colombia.
The Private Managers Index (PMI) survey measured by Banco Davivienda increased by 1.6 percentage points compared to the previous month. It rose from 52.4 in March 2021 to 54 in April 2021. This latest result lies above 50.8 points, the average measure calculated by Davivienda in the long term. The Increase in local demand and succesfull merchandising strategies are among the various factors that Davivienda found as growth drivers.
According to the Colombian Association of Restaurants, Acodres, around 50,000 restaurants have permanently closed since the covid-19 pandemic started 15 months ago. As of March 2021, Acodres recorded 48,900 closures, and preliminary results reveal that 470 restaurants closed in April 2021. The association also informed that 17% of Colombian restaurants are currently operating on weekends only.
After the Colombian government withdrew yesterday its tax reform bill and the Minister of Finance, Alberto Carrasquilla, presented its resignation, the Colombian peso (COP) became the most devalued emerging currency this year by falling 10.21% against the US dollar. Over the past five days alone, amid social unrest and violent protests nationwide, the Colombia currency has devaluated by Co$ 99.95 against the US Dollar, amounting to a total of Co$384.13 this year. Yesterday it hit a six month high of Co$ 3,813.64 per one USD.
The logistics real state developer Latam Logistic Properties announced that its operational storage area increased by 200,000 m2 in Latin America from 100,000 m2 in 2019 to 300,000 m2 in 2020. Today, Colombia represents 30% of its regional portfolio. The company expects to increase investments in Colombia to $30 million per year over the next couple of years, said its CEO, Mike Fangman.