XXIII COLOMBIA NEWSLETTER
International Allies
Bogotá, August 2023
CONTENTS
1. Guest Columnist
2. Good news about Colombia and Bogotá-Region
3. Bogotá Chamber of Commerce News and Upcoming Events
4. Economic Outlook
4.1. Gross Domestic Product
4.2. Inflation
4.3. Business Dynamic
4.4. Employment
5. Foreign Trade
6. Sources
1. GUEST COLUMNIST
BUILDING BRIDGES AND FOSTERING THE ADVANCEMENT OF AFRODESCENDANT WOMEN WORLDWIDE
I had the honour of being invited by the Vice President of the Republic of Colombia, Francia Elena Marquez Mina, to the commemoration of the International Day of Afro-Descendant Women in Bogota. The Commemoration was an event co-organised by the Vice President’s office and the Bogota Chamber of Commerce (BCC). I was invited as the Vice Chair, Africa of the World Chamber Federation (WCF) at the ICC to speak on the Economic Leadership Panel.
This event was held on the 25th of July and Afro-Descendant Women leaders and influencers from different walks of life in South America, the Caribbean, Africa, America, and Europe, were invited to speak on different panels. The panels covered Political leadership, Culture, Women empowerment, and Economic. All of which are critical matters when seeking the advancement of any group of people. The Vice President herself is the first AfroDescendant woman to become the Vice President in Colombia. She sought to create a platform where AfroDescendant women can develop an international agenda for dignifying the lives of our Women and creating opportunities in political, economic, social and cultural spaces.
This conference exposed the gaps in trade and commercial relations amongst peoples of Afro-Descent. It is important to state that at the heart of advancing women of Afro-Descent, there must be an agenda for economic development and empowerment. The role that Chambers of Commerce play in the development of trade relations between businesses of all sizes and sectors with their counter parts across the world is critical. More needs to be done about organizing our business women of Afro-Descent for export and international trade. There is more work for the Chambers of Commerce to do in this regard in Columbia.
My visit ended on the third day with a power lunch organized by the BCC. 20 female Chief Executive Officers of various organisations were invited including a Nobel Laureate and a Global Leader. It was a great time of sharing and learning about our board room and corporate challenges. As I left for my home country Nigeria, I took with me the wonderful memories of the sights, sounds, music, food, culture and warmth of those whom I had met. I am also left with the firm conviction that economic empowerment is an important driver for the advancement of AfroDescendant Women across the world.
Toki Mabogunje
Chair for Africa
ICC World Chambers Federation Vice
2. GOOD NEWS ABOUT COLOMBIA AND BOGOTÁ-REGION
GOOD NEWS ABOUT COLOMBIA
• The Governments of Canada and Colombia ratify their commitment to gender equality through projects to be developed in partnership with UN Women. Both governments presented the projects "Entornos que Cuidan”(Caring Environments) and "Presupuesto por la igualdad” (Budget for Equality) in partnership with UN Women. The first seeks to develop solutions to reduce the inequality of care work in Colombia, while the second focuses on integrating gender perspective in the planning and public budget processes. For more information, see the following link
• Amazon countries, including Colombia, presented the Declaration of Belém to protect the integrity and promote sustainable development in the Amazon This statement was released during the Amazon Summit that brought together the eight member countries of the Amazon Cooperation Treaty Organization (OTCA). Among the most critical points, the establishment of an Amazon Alliance to combat deforestation and unite forces and interests for COP 28 and 30 stands out. For more information, see the following link
• The United Arab Emirates expressed its interest in investing in clean energy in Colombia. During the Amazon Summit held on August 8 and in a bilateral meeting with President Petro, Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology of the United Arab Emirates and designated president of COP 28, expressed his country´s interest in investing in clean energy in Colombia, working to obtain financing for climate change and advancing the common goal of decarbonizing the economy. For more information, see the following link
GOOD NEWS ABOUT BOGOTÁ-REGION
• Bogotá turned 485 years old. On August 6, the capital of Colombia celebrated its 485th anniversary. The city's foundation dates back to 1538 when Gonzalo Jiménez de Quesada decided to build 12 tiny houses. Bogotá has more than 8.3 million inhabitants, a robust business sector, and a vast cultural, gastronomic, and entertainment offer. For more information, see the following link
• Bogotá is among the top 5 preferred cities to hold events in Latin America. According to the most recent ranking published by the International Congress and Convention Association (ICCA) on in-person and hybrid meetings in 2022, Bogotá is the fourth preferred city to hold events. In said ranking, it was only surpassed by Buenos Aires, Lima, and Santiago de Chile. For more information, see the following link
• Bogota´s Secretariat of Economic Development, in alliance with the Bogotá Chamber of Commerce, opened the call for an exploratory mission to Venezuela. This initiative, which will take place between September 25 and 28, aims to commercially connect 20 companies from Bogotá with the Venezuelan market through a face-to-face mission focused on reestablishing commercial relations with the neighboring country. For more information, see the following link.
3. BOGOTÁ CHAMBER OF COMMERCE NEWS AND UPCOMING EVENTS
• From August 30 to September 1, Go Fest returns, the most important entrepreneurship festival in Bogotá and one of the most significant in Latin America, organized by the Bogotá Chamber of Commerce. The Bogotá Chamber of Commerce set an ambitious goal to position Bogotá as the Latin American capital of entrepreneurship and innovation, and for this reason, since 2018, we have led the Go Fest Entrepreneurship Festival, an event with which we seek to strengthen the entrepreneurship ecosystem, promote new business ideas and startups and, of course, generate new opportunities to develop innovative business initiatives that respond to the market´s new trends and dynamics. This great bet has become one of Latin America's most important entrepreneurship festivals, with an average of 10,000 attendees each year during the 3-day event We have come recharged for this 2023 edition of the Go Fest, and we will have the best of the entrepreneurship and innovation ecosystem in a single space. This festival provides a unique experience where we will have keynote conferences, founders' talks, conversations with experts, fireside chats, workshops, master classes, startup samples, networking spaces, creative nights, and meetings with communities, among others. For more information, see the following link
• A new edition of the Bogotá Music Market is coming. Bogotá Music Market (BOmm), the Bogotá Chamber of Commerce´s promotion and circulation platform for the music industry, returns from September 11 to 15 BOmm will celebrate Colombian music and become a meeting space for musicians, composers, producers, agencies, businesspeople, brands, record labels, and publishers, recognizing the diversity of genres and the indigenous and root influence that prevails in the national musical proposals that look for marketing and visibility opportunities. In its 11th edition, BOmm will open its doors for the music community to enjoy networking activities and updates on the latest trends in the sector through showcases, business roundtables, BOmm Talks, and BOmm Labs, among other activities that will take place at the Delia Zapata Olivella National Center for the Arts. For more information, see the following link
• The CCB is conducting the second edition of the Decarbonization and Climate Action Survey. This vital survey, aimed at companies in the region in the commerce, industry, and services sectors, identifies changes in trends, progress, and critical issues among companies in the region to face the effects of climate change. For more information, see the following link
• The Gastrofest returns. The Gastronomic Festival of Bogotá and the Region, led by the BCC, seeks to promote gastronomy and tourism and its productive chains as strategic sectors of the city's economy. In the 2023 edition, the festival aims to identify and select at least 130 companies and/or establishments related to gastronomy, 100 in Bogotá and 30 in the province of Sabana Centro in Cundinamarca. The business models of the selected gastronomic establishments will be intervened from the business and technical point of view, and we will promote their commercialization through strategies to activate their offer added to tourist and cultural attractions in their area of influence. For more information, see the following link.
• We are developing a Colombia-Argentina International Economic Forum. Together with the Argentine Chamber of Commerce and Services (CAC), we are organizing the Colombia-Argentina International Economic Forum to
present Argentina's trade and investment opportunities for the Colombian business community. The forum is held within the scope of the business mission to Bogotá scheduled for September, where around eight companies will showcase their products and services and have B2B meetings. For more information, see the following link.
• We allied with the Colombian-Ecuadorian Chamber to carry out the Forum “How to do business with Ecuador.” With this event, we want to make the Colombian business community aware of the existing possibilities in terms of investment and exports that we have with our neighboring country of Ecuador. The agenda will be focused on three topics: i) Legal, tax, labor, and trademark and sanitary registry aspects of Ecuador, ii) Incentives for investment and exports, and iii) how to protect heritage in times of crisis. For more information, see the following link.
4. ECONOMIC OUTLOOK
4.1. GROSS DOMESTIC PRODUCT (GDP)
In the second quarter of 2023, Colombia's GDP grew 0.3% compared to the same period of the previous year. This represents a growth of 11.9 percentage points below the second quarter of 2022 in which the country grew by 12,2%. As such the economy is slowing down
The economic activities with the highest participation in gross value added in the second quarter of 2023 were wholesale and retail trade, public administration and defense, and manufacturing industries, with a participation of 19.37%, 15.65% and 12.76% respectively.
4.2 INFLATION
Both Colombia and Bogotá experienced a decrease in the monthly price variation compared to the same month of the previous year. In July 2022, the monthly variation in Colombia was 0.81% and in Bogotá 0.61%, while in July 2023 it fell to 0.50% and 0.51%, respectively. This decrease indicates less inflationary pressure in the Colombian economy.
Graph 1. Annual growth rate, by quarter, of GDP between 2019 and 2023 Colombia and Bogotá
Source: DANE-SDDE
It is interesting to note that the year-to-year variation in Bogotá has exceeded that of country in the same period. As of July 2023, the year-to-year variation in Bogotá was 6.96%, while for Colombia it was 6.68%. This indicates that the capital has experienced inflationary behavior slightly higher than the national average during that time.
For its part, the annual price variation, although it was higher than in the same month of the previous year, continues to decrease compared to the beginning of the year. In July 2023, for Colombia, the annual price variation was 11.78%, while that of Bogotá was 11.83%.
4.3. BUSINESS DYNAMICS
In July 2023, data shows an increase in the number of active companies in the jurisdiction of the Bogotá Chamber of Commerce compared to previous years. A general growth of 1.7% is observed in the total number of active companies for July 2023 compared to the same month in 2022. This represents an increase of 7,139 companies in one year.
When analyzing the participation of companies by legal order in July 2023, most of the registered companies belong to Physical Persons, with a total of 245,294 companies, which represents 56.0% of the total number of active companies. On the other hand, Legal Person businesses reached a total of 192,747, representing 44.0% of the total number of active companies in the same jurisdiction.
Regarding the annual variation, it should be noted that both categories, Physical and Legal Persons, have experienced growth in the number of active companies between July 2022 and July 2023. The variation for Physical Persons was 0.82%, while for Legal Entities it was 2.74%. This indicates that the business sector in general has shown resilience and has maintained stable growth in the region during this period.
Number of active companies
In terms of annual variation, all categories presented increases in the number of active companies compared to July 2022. Micro-enterprises had a growth of 1.96%, while small companies experienced a decrease of -2.07%. On the other hand, medium businesses fell by 1.06%, while large companies registered a decrease of -1.01%.
4.4 EMPLOYMENT
Employment has shown an improvement compared to the previous year Nationwide the unemployment rate in June 2023 was 9.3%, 1.92 percentage points (p.p) less than June 2022. Likewise, the employment rate has risen 1.82 p p in the last year, reaching 58.3% in June 2023. The global participation rate increased by 0.66 p p , from 63.7% in June 2022 to 64.3% in June 2023.
Source: Large Integrated Household Survey - GEIH (DANE), June 2023
In the case of Bogotá and its metropolitan area, the unemployment rate was 10.1% for the April23-Jun23 mobile quarter, slightly lower than the 10.2% of the national total for the same period For the same quarter, the capital shows an occupancy rate of 61.5%, 3.8pp above the national occupancy rate for the same quarter. The data shows that more people of working age are participating in the labor market in the capital (68.4%) than in the country
Table 2. Evolution of active companies by size during July 2022-2023 Source: Business Registry, CCB, 2021 - 2022 - 2023.(64.3%) The number of employed people grew by 1.03 million from June 2022 to June 2023 Likewise, the number of unemployed persons decreased by 15.0%, which means 419,000 fewer people in a non-employment condition
Regarding labor market figures differentiated by sex, in June 2023 the gap in the unemployment rate between men and women was 3.9pp, 1.0pp less than in the same month of 2022. This is an important point that deserves attention as the difference continues to be very high. However, although unemployment among women remains very high with an unemployment rate of 11.6%, unemployment among women fell 2.5pp from June 2022 to June 2023.
5.
Colombia experienced a -27.5% drop in its exports in June 2023 compared to the same month of the previous year, since in June 2022 the value of exports was $5,497 million FOB dollars, while in June 2023 it was $3,986 million FOB dollars.
Source: DANE, Exports
In Bogotá, exports also decreased to $305.72 million FOB dollars in June 2023, showing a negative variation of6.16%. Cundinamarca, for its part, experienced the most pronounced fall in its exports, with a decrease of 32.3%, with a total of $201.58 million FOB dollars in June 2023. Total exports from the Bogotá-Cundinamarca in June 2023 reached $507.3 million FOB dollars.
The United States stands out as the main trading partner of the region, with exports worth $189.53 million FOB dollars in June 2023, which represents a significant participation of 37.36%. Ecuador and Peru are also prominent destinations, with exports of $57.78 million FOB dollars and $30.33 million FOB dollars respectively, representing
FOREIGN TRADE EXPORTS Graph 2. Annual variation of Colombian exports in Bogotá and Cundinamarca 2021-202311.39% and 5.98% of the region's total exports. “Other countries” received exports for a total of $122.65 million, representing a participation of 24.18%
Mexico, Chile, and Japan also appear as important destinations for the region's exports in June 2023. Their shares in the total are 5.53%, 3.47% and 3.41% respectively, with export values of $28,03 million, $17.59 million, and $17.28 million. Finally, the shares of Venezuela, Panama and Canada were 2.45%, 2.22% and 2.02% respectively in the total.
IMPORTS
In June 2023, total imports from Colombia reached $5,015.2 million CIF dollars, which represents a decrease of21.2% compared to the same month of the previous year. In the context of national imports, Bogotá played an important role, with imports worth $2,496 million CIF dollars in June 2023, which represents 49.77% of the national total. Cundinamarca also had a significant contribution, with imports for $432.8 million CIF dollars, equivalent to 8.63% of the national total.
The Bogotá-Cundinamarca region experienced imports worth $2,928.9 million CIF dollars in June 2023, which reflects a negative variation of -19.0% compared to June 2022. In terms of participation with respect to the country's total imports, the Bogotá-Cundinamarca region represented 58.4% of the total, which underscores its weight in the panorama of Colombian imports.
It is important to highlight that both Bogotá and Cundinamarca experienced decreases in imports in June 2023 compared to the same month of the previous year. Bogotá showed a decrease of -16.9%, while Cundinamarca registered a more pronounced drop of -29.6%. Despite these reductions, the Bogotá-Cundinamarca region maintained a high share of national imports.
China stands out as the main country of origin of imports in the region, surpassing the United States, with a total value of $638.7 million CIF dollars in June 2023. This represents a significant participation of 21.81% in the total of
Graph 3. Imports from Colombia, Bogotá and Cundinamarca (June 2022 – 2023) Source: DANE, Importsimports. The United States follows China as another important trading partner, with imports of $536.92 million CIF dollars, which represents 18.33% of total imports.
Brazil, Mexico, and Spain are also relevant countries of origin in terms of the region's imports. Their shares in the total are 7.31%, 6.0% and 4.59% respectively, with import values of $214.15., $175.65 and $134.3 million CIF dollars. For their part, Germany, France, Argentina, India, and Japan also have a notable participation in the region's imports, with shares ranging between 2.44% and 4.48%.
Although the United States and China are very important partners, together representing 40.14% of the region's imports, it should be noted that the group of "Other countries" also represents a significant participation in the region's imports, reaching 26 93% of the total with a value of $788.72 million CIF dollars, which shows the diversity of international suppliers with which the region does business.
6. SOURCES
• Para más información remítase al Observatorio de la Cámara de Comercio de Bogotá. https://www.ccb.org.co/observatorio
• DANE. Cuentas Nacionales. Recuperado de: https://www.dane.gov.co/index.php/estadisticas-portema/cuentas-nacionales/cuentas-nacionales-trimestrales
• DANE. Mercado Laboral. Información recuperada de: https://www.dane.gov.co/index.php/estadisticas-portema/mercado-laboral/empleo-y-desempleo
• Registro Mercantil, CCB, 2019 - 2020 – 2021 - 2022. Recuperado de: https://www.ccb.org.co/Inscripciones-yrenovaciones/Matricula-Mercantil/Boletines-del-Registro-Mercantil/Boletines-ano-2021
• DANE. Encuesta Pulso Social. Recuperado de: https://www.dane.gov.co/index.php/estadisticas-portema/encuesta-pulso-social
• DANE, Exportaciones. Febrero abril. Recuperado de: https://www.dane.gov.co/index.php/estadisticas-portema/comercio-internacional/exportaciones
• DANE, Comercio internacional importaciones abril 2023. Recuperado de: https://www.dane.gov.co/index.php/estadisticas-por-tema/comercio-internacional/importaciones
• Ministerio de Comercio, Industria y Turismo. Informes de Inversión Extranjera Directa. Recuperado de: https://www.mincit.gov.co/estudios-economicos/estadisticas-e-informes/informes-de-inversion-extranjera
• Observatorio de Desarrollo Económico de Bogotá. Recuperado de: https://observatorio.desarrolloeconomico.gov.co/expectativas/indice-de-confianza-industrial-vuelve-terrenopositivo