Moody’s warns Colombia about tax reform withdrawal

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.

Colombian PMI reaches highest value in six months

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.

More than 50,000 restaurants have closed down due to Covid-19

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.

Colombian Peso the most devaluated currency in the world

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.

Latam Logistic Properties to invest $30 mn in Colombia per year

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.

Codensa’s net profit up by 20%

The energy distributor Enel-Codensa's net profit increased by 20% in the first quarter of 2021, compared to the same period last year. It reached a net profit of $62 million (Co$ 230,639 billion). Its operating also increased by 3.7% to $392 million (Co$ 1.46 trillion). These results are correlated to the recent increase in the base of assets approved by the national government in 2020, informed Enel-Condensa.

Hotel occupancy increased to 32% in March

In Colombia, the hotel occupancy rate increased to 32.25% in March 2021, 6,8 percentage points higher same month last year (28.40%), revealed the national association of hotels (Cotelco). Although this is still low, it represents an improvement as the occupancy rate reached a minimum historical low of 2% last year due to the covid-19 outbreak, … Continue reading Hotel occupancy increased to 32% in March

Colombian’s sovereign bond spread widens by 20%

Colombia’s dollar bonds are being priced as though they were already junk as investors bet that the government will fail to raise taxes enough for the country to cling onto its investment-grade credit rating. With investors pricing in a high likelihood of a ratings downgrade, the country’s average sovereign bond spread has widened by 20 … Continue reading Colombian’s sovereign bond spread widens by 20%