Availability of credit
Private sector
Consumer
Interest rate
The graph represents the interest rate trend in Colombia, which is expressed in percentages and comes from 2008 to 2016.
The interest rate in Colombia for 2015/11/27 was 5,5% and it has been increasing 0,25% monthly. The last interest rate published was on 2016/01/29 and it was 6%. And the expectancy for 2016/02/19 is 6,25%.
Inflation rates
Consumer prices in Colombia increased 7.45 percent year-on-year in January of 2016, the highest since December of 2008. Inflation Rate in Colombia averaged 14.69 percent from 1955 until 2016, reaching an all time high of 41.65 percent in June of 1977 and a record low of -0.87 percent in July of 1955. Inflation Rate in Colombia is reported by the Dane, Colombia.
Money markets
Money markets are a good place to "park" funds that are needed in a short time period - usually one year or less. The financial instruments used in the money markets include deposits, collateral loans, acceptances and bills of exchange. Institutions operating in money markets are central banks, commercial banks and acceptance houses, among others.
Money markets provide a variety of functions for either individual, corporate or government entities. Liquidity is often the main purpose for accessing money markets. When short-term debt is issued, it is often for the purpose of covering operating expenses or working capital for a company or government and not for capital improvements or large scale projects. Companies may want to invest funds overnight and look to the money market to accomplish this, or they may need to cover payroll and look to the money market to help. The money market plays a key role in ensuring companies and governments maintain the appropriate level of liquidity on a daily basis, without falling short and needing a more expensive loan or without holding excess funds and missing the opportunity of gaining interest on funds.
Investors, on the other hand, use the money markets to invest funds in a safe manner. Money markets are considered low risk; risk-adverse investors are willing to access them with the anticipation that liquidity is readily available. Older individuals living on a fixed income often use the money markets because of the safety associated with these types of investments.
http://www.investopedia.com/articles/investing/052313/financial-markets-capital-vs-money-markets.asp
Gross domestic product trend
The gross domestic product (GDP) measures of national income and output for a given country's economy. The gross domestic product (GDP) is equal to the total expenditures for all final goods and services produced within the country in a stipulated period of time. This page provides - Colombia GDP - actual values, historical data, forecast, chart, statistics, economic calendar and news. Colombia GDP - actual data, historical chart and calendar of releases - was last updated on February of 2016.
Consumption data suggest the scale of markets in low-income communities. The market for food and beverages in the lower consumption segments is significantly larger than the market in the middle and higher segments combined. The same is true for energy. In most other sectors—clothing and footwear, housing, education, health, water—people in the lower consumption segments collectively spend roughly as much as those in the higher segments. Only in transport, financial services, and information and communication technology (ICT) do the two higher segments combined outspend the lower segments.
Consumption patterns
Unemployment trends
The unemployment rate for february 2016 is 10%, according to DANE.
The cities with the highest recorded unemployment during 2014 were Armenia and Cucuta with 15% and Quibdo with 14.5%.
The cities with the lowest unemployment rate during 2014 were San Andres with 7%, Barranquilla with 7.9% and Bucaramanga with 8.2%.
Of Colombia’s largest cities, Bogota registered 8.7% unemployment during 2014, Cali 13.1% and Medellin 10.2%.
Twelve of the 23 cities included by Dane in the report recorded single digit unemployment rates for 2014.
Colombia’s unemployment was 8.7% in December 2014, a rise of 0.3 percentage points from the 8.4% registered during December of 2013 however.
In the final trimester of 2014, the sectors which recorded the highest participation were commercial, restaurants and hotels with 27.2%, community, social and personal services with 19.3% and agriculture, hunting, forestry and fishing with 16.4%.
Worker productivity levels
In the frame of the economic globalization the increases of the labor productivity turn into a mechanism to reach a major competitiveness, as long as stem from improvements in the productive processes and in the indicators of management of the workers, as well as from the introduction of innovations that strengthen increases in the added value.
Value of the dollar in world markets
The dollar value has an important impact in the industry due to if it increases some costs, like raw materials are going to increase too inside the industry.
Purchase
Sale
15/02/2016: 3,145.00
15/02/2016: 3,170.00
Stock market trends
Colombia IGBC (Índice General de la Bolsa de valores de Colombia), lost 16.93 percent during the last year. During the last year Colombia has been passing through a difficult economic moment, that’s why Colombia stock market has gotten a record low of 1051.25 in December of 2015.
The next table shows the behavior of Colombia Stock Market in the last 4 years (since 2011 to 2015).
Import/export factors
The next table shows the exports in Colombia since 2011 to 2014 (millions of dollars)
The next table shows the imports in Colombia since 2011 to 2014 (millions of dollars)
Colombia has had an important relationship with The United States in economic terms, it is the principal exporter and importer of Colombia. After comes China that has been growing up, then comes Mexico, India etc.
Petroleum, charcoal, chemical, gold, coffee, flowers, nickel and banana are the principals products to export in Colombia
United States is also the principal importer for Colombia’s economy with more than 29% of participation, then comes China (17%) and Mexico (8%) like in the exports, but then appears Brazil like one of the greatest importers of Colombia of 4% of participation.
The principal products that Colombia import are airplanes and gasoil.
Demand shifts
Demand curve
A demand curve provides an economic agent's price to quantity relationship related to a specific good or service. Movements along a demand curve are related to a change in price, resulting in a change in quantity; shifts is demand (D1 to D2) are specific to changes in income, preferences, availability of substitutes and other factors.
A change in preferences could result in an increase (outward shift) or decrease (inward shift) in the quantity level desired for a specific price; while a change in the price of a substitute, could result in an outward shift if the price of the substitute increases and an inward shift if the substitute's price decreases. The demand curve for a good will shift in parallel with a shift in the demand for a complement.
Price fluctuations
Refers to the change and variation of prices in a certain economy in a period of time. (dictionary)
The dollar fluctuation is something that affects all Colombian economy, the dollar value increase makes some products be more expensive, because when you have to import products to Colombia, usually you pay in dollars, and that's because Colombian money has lower price in comparison to the dollar.
So, Colombian importers pay more for a product and it makes the product to be sold inside Colombia with a higher price, so that's why in the last years we pay more for a product that in the past was cheaper, but for people that export Colombian products it's an advantage because they get paid in dollars, and when they exchange they earn more money.
Monetary policies
There are two types of monetary policy, expansionary and contractionary Expansionary monetary policy increases the money supply in order to lower unemployment, boost private-sector borrowing and consumer spending, and stimulate economic growth. Often referred to as "easy monetary policy".
Contractionary monetary policy slows the rate of growth in the money supply or outright decreases the money supply in order to control inflation; while sometimes necessary, contractionary monetary policy can slow economic growth, increase unemployment and depress borrowing and spending by consumers and businesses.
When the Banco de la República alters its intervention rates, it affects the market’s interest rates, the exchange rate and the cost of credit, thereby activating mechanisms that affect the following:
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Financial markets.
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Decisions by economic agents on expenditure, production and employment.
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Expectations of economic agents, based on of policy announcements.
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The inflation rate, after a long and variable period of time.
These mechanisms are known as Transmission Mechanisms. They refer to the processes or channels, through which monetary policy decisions influence the product (GDP) and inflation.
Fiscal policies
Through fiscal policy, regulators attempt to improve unemployment rates, control inflation, stabilize business cycles and influence interest rates in an effort to control the economy. Fiscal policy is largely based on the ideas of British economist John Maynard Keynes (1883–1946), who believed governments could change economic performance by adjusting tax rates and government spending.
Tax rates
A tax rate is the percentage of an individual's taxable income or a corporation's earning that is owed to the state, federal and in some cases, municipal governments. In certain municipalities, regional income taxes are also imposed, increasing the tax burden for those residents.
The term tax rate can also refer to other occasions where taxes are imposed. Examples include sales tax on goods and services, real property tax, short-term capital gains tax rate and long-term capital gains tax rate.
Federal government budget deficits
Colombia recorded a Government Budget deficit equal to 2.40 percent of the country's Gross Domestic Product in 2014. Government Budget in Colombia averaged -3.63 percent of GDP from 2001 until 2014, reaching an all time high of 0.23 percent of GDP in 2005 and a record low of -8.47 percent of GDP in 2004. Government Budget in Colombia is reported by the Ministry of Finance and Public Credit Republic of Colombia.
European Economic Community (EEC)
On March 25, 1957, France, West Germany, Italy, the Netherlands, Belgium, and Luxembourg sign a treaty in Rome establishing the European Economic Community (EEC), also known as the Common Market. The EEC, which came into operation in January 1958, was a major step in Europe’s movement toward economic and political union.
In the Common Market, trade barriers between member nations were gradually eliminated, and common policies regarding transportation, agriculture, and economic relations with nonmember countries were implemented. Eventually, labor and capital were permitted to move freely within the boundaries of the community.
Organization of Petroleum Exporting Countries (OPEC)
The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental Organization, created at the Baghdad Conference on September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.
OPEC's objective is to co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry.
Less Developed Countries (LDC)
States that are deemed highly disadvantaged in their development process, for structural, historical and also geographical reasons. LDCs face more than other countries the risk of deeper poverty and remaining in a situation of underdevelopment. These countries are also characterized by their vulnerability to external economic shocks, natural and man-made disasters and communicable diseases. As such, the LDCs are in need of the highest degree of attention from the international community. Currently, the 48 LDCs comprise around 880 million people, 12 per cent of the world population, which face severe structural impediments to growth.
Four United Nations Conferences on the LDCs were held in: 1981, 1990, 2001 and 2011. The Fourth United Nations Conference on the Least Developed Countries adopted the Programme of Action for the Least Developed Countries for the Decade 2011-2020 in which the most developed countries pledged to help with a 0.15-0.20% of their gross domestic products for the development of LDCs.
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Low-income criterion
based on a three-year average estimate of the gross national income (GNI) per capita (under $750 for inclusion, above $900 for graduation)
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Human resource weakness criterion
involving a composite Human Assets Index (HAI) based on indicators of:
(a) nutrition; (b) health; (c) education; and (d) adult literacy.
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Economic vulnerability criterion
based on indicators of the instability of agricultural production; the instability of exports of goods and services; the economic importance of non-traditional activities (share of manufacturing and modern services in GDP); merchandise export concentration; and the handicap of economic smallness.
Level of disposable income
It's and important factor to the industry, because of salaries increase people could have more disposable income to spend money in different things than the family shopping basket.
The inflation rate for february 2016 is 7.59%, according to DANE.
The interest rate for february 2016 is 6.50%, according to DANE.
