Economic losses from protests in Colombia range from Co$6 trillion ($1.6 billion) to Co$10 trillion ($2.7 billion), finance minister José Manuel Restrepo said. Trade, freight transport and agriculture are the sectors most affected. The damage will result, according to the official, in a slowdown of the expected growth in these months. The consensus among businessmen is that the blow to employment will be hard, because many sectors will take up to a year and a half to recover.
Colombian coal mine Cerrejon will halt operations because of two blockades that have prevented from it bringing in supplies of gasoline, it said on Sunday, the latest trouble for the major miner. Cerrejon, jointly owned by BHP Group, Anglo American Plc and Glencore Plc, has had repeated disagreements with nearby Wayuu indigenous communities and its largest union, which held a three-month strike last year.
Colombia’s civilian aviation authority, Aeronáutica Civil, or Aerocivil, approved the joint venture between Delta Air Lines, LATAM Airlines Group S.A. and its subsidiary LATAM Airlines Colombia S.A. without conditions. The airlines say their joint venture will “improve air connectivity and provide passengers and cargo customers with a seamless travel experience between North and South America” once regulatory approvals have been obtained. The agreement has also been granted the authorization of regulatory entities in Brazil and Uruguay, while the review process continues in other countries, including LATAM’s home country of Chile.
Colombia's majority state-owned oil company Ecopetrol reported a soaring first-quarter net profit of Co$3.09 trillion ($806.5 million) for this year, buoyed by improved oil prices and with the backdrop of a dismal comparative period in 2020. The oil company reported a net profit of Co$133 billion in the first quarter of 2020, following a global slump in oil prices and after booking an impairment worth Co$1.21 trillion. Ecopetrol's first-quarter earnings before interest, taxes, depreciation and amortisation rose 55.7% to 8.19 trillion pesos, the company said.
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.
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.
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.
Local bank Bancamía will issue $59 million (Co$ 200 billion) in social bonds for gender equity in Colombia. Securities are guaranteed by BBVA Colombia and rated AA + by BRC Investor Services, informed Bancamía. In this placement, resources will grant about 50,000 loans to female micro-entrepreneurs in conditions of vulnerability.