1. Guest Columnist 2. Good news from Colombia and Bogotá-Region 3. BCC News and Upcoming Events
4. Economic Developments
4.1. Gross Domestic Product - GDP
4.2. Economic Monitoring Indicator
4.3. Inflation
4.4. Business Dynamics
4.5. Labor Market
5. Evolution of Foreign Trade
5.1. Exports
5.2. Imports
6. Sources
PUBLIC POLICIES AND REGULATORY FRAMEWORK FOR THE POPULAR AND SOLIDARITY ECONOMY: ANALYSIS OF EXISTING POLICIES AND RECOMMENDATIONS TO IMPROVE THE LEGAL AND OPERATIONAL ENVIRONMENT FOR THESE INITIATIVES
In 2008, the Constitution of the Republic of Ecuador defined the Ecuadorian economic system as social and solidarity based. This was the starting point for the enactment of the Organic Law of Popular and Solidarity Economy (LOEPS) in 2012, which established the necessary concepts for the recognition of this third sector of the Ecuadorian economy, comprised of popular economic units and organizations (associations, cooperatives, and community organizations).
This formal recognition of the popular and solidarity economy, which is an associative and solidarity-based approach, has allowed for the merging of individual potentials and needs into a formal common process. This process, which prioritizes human beings as both subjects and ends, consists of 16,552 organizations that include 552,000 members, according to SEPS data as of 07/13/2024.
One of the main milestones of LOEPS is the establishment of the institutional framework that supports this economic system: the National Institute of Popular and Solidarity Economy (IEPS) for promotion and development, the Superintendence of Popular and Solidarity Economy (SEPS) for recognition and control, the National Corporation of Popular and Solidarity Economy (CONAFIPS) for financing through the popular and solidarity financial system, and its governing body, the Interinstitutional Committee, composed of five state ministries: Ministry of Economic and Social Inclusion (MIES, which presides over it), Ministry of Production, Foreign Trade, Investments and Fisheries, Ministry of Tourism, Ministry of Transportation, and Ministry of Agriculture.
By virtue of this institutional and regulatory apparatus in the country, policies in support of this sector have become state policies, such as public procurement. It is traditional for the textile production organizations of the popular and solidarity economy to manufacture uniforms for students in public schools and colleges, involving around 39 million dollars per year and including actors from the popular and solidarity economy. Manufacturing desks and cabinets for schools, metalworking producers, cleaning of schools and institutional offices are also done by the actors of the popular and solidarity economy in the cleaning sector, also providing food to CDIs and Elderly Centers by the actors of the popular and solidarity economy in the food sector. As mentioned earlier, this has created opportunities for generating decent work for this economic segment in the
country. This begins with the political will of the authorities in office, those who prioritize the large majority.
The experience from a decentralized government approach, especially in the capital of the republic, has resulted in an ordinance promoting the popular and solidarity economy, which sets a market reserve for the popular and solidarity economy and allows for a percentage of inclusion in public procurement, enabling thousands of actors in the popular and solidarity economy to access decent work.
Finally, it is important to mention that there is a pending public policy to be managed, which is to facilitate access for the popular and solidarity economy to the private market and to expand job opportunities under the conditions previously mentioned.
In Ecuador, there are established promotion policies as support measures in the financing axis that have yielded some results; however, there is still much to be done in this regard.
LUCÍA CALDERÓN AGUILAR Chamber of the Popular and Solidarity Economy President
Colombia Nos Une commemorated our 214 years of independence (July 20) with activities held in 32 cities around the world. These activities benefited more than 20,000 Colombians, with the objective of strengthening the connection of Colombians with their country and reaffirming their identity through various cultural expressions. For more information, visit the following link.
Colombia leads its first meeting as president of the Association of Caribbean States ACS. During the inaugural session (July 19) of the Steering Committee of the Council of Ministers, which includes Cuba, Honduras and Suriname, as well as the General Secretariat of the Organization, the strategic vision of the Colombian presidency was introduced, which is based on progressive foreign policy and diplomacy for life and nature to address the challenges of the climate crisis. For more information, visit the following link.
As of May, exports of non-mining goods to Belgium, Italy and China had grown more than 40%. In the first five months of the year, non-mining foreign to the rest of the world grew by 6%. Among the 17 main destinations for Colombian exports of agricultural, agro-industrial and industrial goods, eight stood out with up to double digit growth. For more information, visit the following link
Foreign Minister Murillo participated in the Foreign Affairs Ministerial Meeting of the Americas Partnership for Economic Prosperity (APEP) in Washington D.C. Through this multilateral forum, we seek to attract responsible investments to strengthen competitiveness, build more resilient and secure supply chains in the region, and generate quality jobs that allow us to take advantage of the potential of the communities in the Western Hemisphere. For more information, visit the following link.
Colombia participated in the Sixty-Fifth Series of Meetings of the Assemblies of the Member States of WIPO In Geneva, Switzerland. Colombia promoted the need to advance in the construction of a flexible and inclusive Intellectual Property system, at the service of all humanity, and the consolidation of a fair Sustainable Development system for all. For more information, visit the following link
The District presented its strategy: Bogotá́, a City of Open Doors to the World. Its objective is to improve Bogotá's visibility in international settings, as well as attract technical, financial and knowledge resources that can enhance local projects and improve the quality of life of its inhabitants, and to share and export innovative solutions that can be replicated by other local governments for the benefit of their inhabitants. For more information, visit the following link
The District moves forward to consolidate Bogotá as the capital of diversity. WeTrade, the Expo for diverse opportunities and businesses, is organized by the Chamber of Diversity, in alliance with the Bogotá Chamber of Commerce and various other companies. The event also had an academic agenda for attendees to access workshops, talks and conferences on workplace inclusion, diversity in companies and sustainable development. It is the first time that a collaboration with international actors has been established. For more information, visit the following link
Bogotá, recognized as a leading business destination in South America 2024. On July 2, Colombia stood out in the global tourism awards at the World Travel Awards, after obtaining several recognitions in key categories, among which the city won and stood out as the best leading business destination in South America 2024. For more information, visit the following link.
Employment in Bogotá is recovering. The unemployment rate continues to fall, reaching single digits: 9.9%. In the last quarter, Bogotá's unemployment rate decreased and was lower than the national average (10.7%). Bogotá completed five consecutive quarters with a lower unemployment rate compared to the 13 main cities. For more information, visit the following link
The Bogotá Chamber of Commerce announces the Science, Technology and Innovation Campus (CTIB). The entity aims to benefit 36,000 people a year through training for 3,000 interested parties as part of the program. Likewise, they estimate that 2,700 direct jobs will be generated by 2047. For more information, visit the following link.
The BCC is pleased to be part of the "ALPRODE" capacity building project co-financed by the ERASMUS + Program of the European Union. The project will last three years, during which time students, teachers and administrative staff will be trained, while also promoting the
strengthening of the university system in Ecuador and Colombia and improving employment opportunities for more than 200 students. For more information, visit the following link.
The Bogotá Chamber of Commerce offers support to companies in insolvency. More than 80 cases have been followed, of which 85% of business owners signed recovery agreements since the issuance of the new business rescue regulations. For more information, visit the following link.
The Large Survey on the business community and the popular economy. The BCC will carry out, between July and October, the large survey on the business community and the popular economy to provide an annual tool that allows a 360° view of the business fabric, with information on the economic and demographic characteristics of the business community and the popular economy of Bogotá and 59 municipalities of Cundinamarca. For more information, visit the following link
During the fourth quarter of 2023, Bogotá's GDP grew 0.68% compared to the same period of the previous year, this means a reduction of 3.25 percentage points compared to the growth of the fourth quarter of 2022, in which the city grew 3.93%. In terms of the entire year or year to date, the results showed that the city's Gross Domestic Product grew 0.6% in 2023 compared to 2022, similar to the growth recorded by the country for the entire year 2023, or 0.61%.
The growth rate slowed down compared to the first half of 2022, even reaching negative levels in the third quarter of 2023 and finally a positive variation in the fourth quarter. The economic activities with the highest growth in gross value added in the fourth quarter of 2023 compared to the same period of the previous year were Construction, Financial and Insurance activities; and Public Administration and Defense, with growth of 7.1%, 5.3% and 4.7% respectively.
Source: DANE - SDDE
According to the Economic Monitoring Indicator (EMI), in May 2024, a -0.4% variation was recorded, compared to March 2024, which recorded of 2,0%.
In May 2024, the activities that showed the greatest annual increase in the ISE were Public administration and defense (9.0%) and Agriculture, livestock, hunting, forestry and fishing; Exploitation of mines and quarries (4.6%). On the contrary, the activity that registered the greatest drop was Manufacturing Industries; construction that presented an annual reduction of 2.9% during the analysis period.
Bogotá saw an increase in the monthly price variation in June 2024 compared to the same month of the previous year, while in Colombia the monthly variation was slightly lower. In June 2023, the monthly variation in Colombia was 0.30% and in Bogotá 0.24%, while in June 2024 it was 0.32% and 0.43%, respectively.
Table 1. Monthly and annual inflation in Colombia and Bogotá during June 2023-2024.
Source: DANE - Consumer Price Index (CPI).
The annual price variation in Colombia decreased from 12.13% in June 2023 to 7.18% in June 2024, while the annual price variation in June 2024 in the capital shows a reduction of 4.50 percentage points compared to the same month in 2023, from 11.94% to 7.44%.
In Colombia's spending divisions for June 2024, these show that the spending division with the greatest drop was Education, which presented a negative variation of 0.18%. On the other hand, in Bogotá, the Food and non-alcoholic beverages division ranked first with a monthly variation of 0.87%. These were followed by Health, 0.79% and Recreation and Culture, 0.58%. Regarding the divisions that fell, only 1 spending division presented a negative variation: Alcoholic beverages and tobacco, which decreased by 0.01%.
Graph 3. Monthly CPI variation, by spending division, Colombia and Bogotá June 2024
Alimentos Y Bebidas No Alcohólicas
Salud
Recreación Y Cultura
Alojamiento, Agua, Electricidad, Gas Y Otros Combustibles
Restaurantes Y Hoteles
Información Y Comunicación
Bienes Y Servicios Diversos Transporte
Prendas De Vestir Y Calzado
Muebles, Artículos Para El Hogar Y Para La Conservación Ordinaria Del Hogar
Educación
Bebidas Alcohólicas Y Tabaco
Source: DANE - Consumer Price Index (CPI).
In the spending divisions for Colombia for June 2024, the division of Accommodation, Water, Electricity, Gas and Other Fuels presented the greatest monthly variation, 0.58%, followed by Health, with a variation of 0.49%.
Regarding the intervention rate, the main monetary policy intervention mechanism used by central banks to control inflation, the Central Bank continues with a strong monetary policy and maintains the high intervention rate. However, between 2023 and 2024, there has been a significant slowdown in inflation thanks to this policy. Based on this result, the board of directors has decided to maintain the interest rate at 11.25%. Additionally, the monetary authority in its April/2024 monetary policy report projected total and basic inflation at 5.5% and 5.1% for 2024, respectively.
In the period from January to June 2024, the data shows a drop in the number of companies created in the jurisdiction of the Bogotá Chamber of Commerce compared to previous years. A general decrease of 5% is observed in the total number of companies created for the reference period compared to the same period in 2023. This represents a drop of 2,399 companies in one year.
It can be seen that 66.9% of the registered companies belong to Natural Persons, with a total of 30,775 companies, while companies under Legal Persons reach a total of 15,215, which represents 33.1% of the total companies created. in the jurisdiction.
Employment has shown an improvement in occupancy compared to the previous year. At the national level, the unemployment rate in May 2024 was 10.3%, 0.2 p.p. lower than May 2023, similarly, the occupancy rate has increased 0.3 p.p. in the last year, reaching 57.5% by May 2024. The global participation rate varied by 0.3 p.p. and stood at 64.1% in May 2024, a figure lower than that for the same period of the previous year, 63.9%.
Table 2. GPR, OR and UR, Colombia
In Bogotá and the metropolitan area, the unemployment rate was 9.9% for the moving quarter MarchMay 2024, a figure lower than 10.7% of the national total for the same period. For the same moving quarter, the capital shows an occupancy rate of 65.0%, 7.9 p.p. above the national occupancy for the same quarter, which stood at 57.1%. The data shows that more people of working age are participating in the labor market in the capital (72.1%) than in the country (64.0%).
The number of employed persons in the country grew by 463,000 from May 2023 to May 2024, likewise the number of unemployed persons decreased by 0.2%, which means 6,000 fewer unemployed persons.
In May 2024, Colombia experienced a drop in its exports of 1.1% compared to the same month of the previous year. On the other hand, Bogotá showed a growth of 6.5%, and Cundinamarca registered a decrease of 1.7%.
Graph 4: Colombia, Bogotá – Cundinamarca region exports, May 2022, 2023 and 2024
Source: DANE, International trade.
In May 2024, Colombia showed exports worth $4.5 billion FOB dollars. Bogotá, for its part, maintained positive growth, reaching $382.9 million FOB dollars for that month. Finally, Cundinamarca experienced an increase in its exports, reaching $238.5 million.
Total exports from the Bogotá-Cundinamarca region reached a value of $621.4 million FOB dollars. The United States stood out as the main destination of exports, with a total of $279 million FOB dollars, which is equivalent to 41.3% of the general total. Ecuador ranked second on the list of export destinations with $55 million FOB dollars, representing 8.2% of the total, while Mexico came in third place with 37 million FOB dollars, and with a share of 5.4 %. Spain and Venezuela also stood out as relevant destinations with $32 million (4.7%), and $26 million (3.8%) respectively. Peru contributed $25 million (3.7%) and the Netherlands contributed $18 million (2.6%); Chile, Panama and Canada
contributed $16 million (2.3%), $15 million (2.2%) and $14 million (2.1%), respectively, to the region's exports.
Exports to other countries, grouped under "Other Countries", represented $161 million FOB dollars, constituting 23.7% of the overall total, a significant contribution.
Graph 5. Exports according to destination countries. Bogotá – Cundinamarca, April 2024
Source: DANE, International trade.
In May 2024, Colombia's total imports reached $5,535.5 million CIF, experiencing an increase of 2.2% compared to April 2023. Similarly, Bogotá showed a rise in its imports by 21.5% compared to the same month of the previous year, reaching $2,856.6 million CIF in May 2024. Conversely, Bogotá's share of national imports decreased, falling from 52.5% in May 2023 to 51.6% in May 2024.
Graph 4: Colombia, Bogotá – Cundinamarca region imports, May 2023 and 2024
Mayo, 2023 Mayo, 2024
Source: DANE, International trade.
Cundinamarca also experienced an increase in its imports, reaching $440 million CIF in May 2024, which is a rise of 0.9% compared to May 2023. Cundinamarca's share of national imports decreased from 8.0% in May 2023 to 7.9% in May 2024.
The Bogotá-Cundinamarca region, which includes Bogotá and Cundinamarca, recorded imports worth $3,296.5 million CIF in May 2024, representing an increase of 0.5% compared to the same month of the previous year. The share of this region in national imports decreased from 60.6% in May 2023 to 59.6% in May 2024.
Graph 6. Imports according to countries of origin. Bogotá – Cundinamarca, May 2024
Source: DANE, International trade.
The region's main trading partners were the United States and China. The United States led with $862 million CIF dollars, representing 26.1% of the total, followed by China, which contributed $691 million CIF dollars, representing 20.9% of the total. These two countries represent almost half of all imports in the region (47.1%).
Finally, "Other Countries" contributed $918 million CIF dollars, representing 27.9% of the region's total imports, underscoring the diversity of import origins beyond the main partners mentioned.
For more information refer to the Observatory of the Bogotá Chamber of Commerce. https://www.ccb.org.co/observatorio
DANE. National accounts. Recovered from: https://www.dane.gov.co/index.php/estadisticas-portema/cuentas-nacionales/cuentas-nacionales-trimestrales
DANE. Labor market. Recovered from: https://www.dane.gov.co/index.php/estadisticas-por-tema/mercado-laboral/empleo-y-desempleo
Commercial Registry, BCC, 2019 - 2020 – 2021 – 2022 – 2023 - 2024. Recovered from: https://www.ccb.org.co/Inscripciones-y-renovaciones/Matricula-Mercantil/Boletines-del-RegistroMercantil
DANE. Social Pulse Survey. Recovered from: https://www.dane.gov.co/index.php/estadisticas-portema/encuesta-pulso-social
DANE, International Trade. Recovered from: https://www.dane.gov.co/index.php/estadisticas-portema/comercio-internacional
Banco de la República. https://www.banrep.gov.co/sites/default/files/nota_de_prensa_inversion_directa.pdf