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.
The Colombian Committee of Steel Producers of Andi, formed by Acerías Paz del Río, Gerdau Diaco, Grupo Siderúrgico Reyna, Sidoc and Ternium, companies that represent the totality of the national steel production, reported that due to the blockades on the roads in the framework of the National Strike, 45,000 direct and indirect jobs are at risk. The steel industry has already reported losses of Co$248 billion ($66.2 million).
BBVA, Bancolombia, Banco de Bogotá, Davivienda and other financing companies offer lower rates for sustainable housing and electric cars. In the case of sustainable housing, they offer significant reductions in interest rates that can range from 65 to 200 basis points. In the case of electric vehicles, interest rate reductions can be more than 400 basis points below traditional rates.
Colombia's gross domestic product (GDP) grew 1.1% in the first three months of 2021, which contrasts with the worst moments of the pandemic, when the economy contracted 15.7% in the second quarter of 2020 and 8.6% in the third quarter. This performance was explained by a significant boost from manufacturing, public administration, defence, health, education and agriculture, sectors that contributed 1.6 percentage points to GDP output in the first quarter.
Protests in Colombia that began on 28 April have left Co$65 billion ($17.02 million) worth of damage to transport infrastructure in Cali and Bogotá, the government said. According to Transport Minister Ángela María Orozco, there is significant damage to mass transit systems, with the most serious damage occurring in Cali. Figures to date indicate that between Bogotá and Cali there are 591 vandalised trunk or zone buses. Of these, 175 cannot be used again due to damage.
Protests continue across Colombia, with dozens of people dead and hundreds injured since they began on 28 April The demonstrations were originally against tax reforms that its government said would be key to handling the country's economic crisis – reforms its president has since withdrawn. But the protest movement has grown to include calls for improvements to the country's pension, health and education systems.
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.
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.