International Allies
Bogotá, January 2023
CONTENTS
1. GUEST COLUMNIST HAPPY AND PROSPEROUS 2023
A 2022 full of great challenges culminated, but also important achievements for the business sector in the Bogotá-Region were obtained. After three arduous years, in 2022, thanks to the tenacity and resilience of our business community, we were able to consolidate an economic recovery process, recovering all the jobs lost due to the pandemic and growing above the numbers observed in 2019.
Particularly, I am very proud of the role that the Bogota Chamber of Commerce played in this process. Despite the difficulties, we managed to close the year with a 6.3% growth in the number of active companies compared to 2021 in Bogotá and the 59 municipalities of Cundinamarca under our jurisdiction. Additionally, we benefited more than 165,000 companies with our business strengthening, competitiveness, cultural platforms, and international relations services.
In this last segment, we are aware that the different geopolitical tensions, added to the lingering negative effects of the pandemic, meant great challenges for foreign trade. This is why we are proud to have worked hand in hand with our international allies to offer a portfolio of services that fostered international business, benefiting more than 208 businessmen and women through 7 economic diplomacy missions; commercial agendas for companies from Mexico, the Dominican Republic, and Puerto Rico that showed their interest in our market; 4 trade missions in Ecuador, Mexico, Costa Rica, and Panama in which more than 30 companies from the region were able to explore business opportunities, and of course a significant number of networking spaces.
Additionally, we successfully carry out 3 special initiatives to promote our companies abroad. In March, we participated in Expo Dubai with 30 companies, 3 of which also had the opportunity to participate in Gulfood, the most representative food, and beverages fair in the MENA region. Likewise, we were part of the Más Productividad, Más Destinos (More Productivity, More Destinations) program of the National Government, through which we allowed 6 of our companies to reach Germany, the United Arab Emirates, and the Republic of Korea. We were proud to carry out, hand in hand with El Corte Inglés (ECI), the second edition of the Bogotá Marcando Estilo program, which aims to promote exports in the gastronomy, fashion, jewelry, and tourism industries in Spain. In total, 27 companies benefited, of which nine were from the fashion, leather goods, and jewelry sectors, selling their products in pop-ups in 5 ECI stores and registering exports of more than USD 163 thousand. Also, one restaurant won the gastronomic contest and was able to offer its menu in the 100 cafeterias of the chain. We also had 17 food companies participating in the restaurant team's supply round.
Likewise, we had the honor of hosting visits of the highest level, as was the case of the President of the Government of Spain, Mr. Pedro Sánchez, and the President of Costa Rica, Mr. Rodrigo Chaves, who commented on the advantages and opportunities that their countries offer to our businesses. Additionally, we had the pleasure of receiving a delegation of European parliamentarians and Mr. Virginijus Sinkevičius, Commissioner for Environment, Oceans and Fisheries of the European Union, with whom we were able to exchange on the
Nicolás Uribe Rueda Executive President of the Bogotá Chamber of Commerceopportunities and challenges presented by the transition towards more sustainable and digitally based production models.
In addition to the above, I had the great honor of being appointed Chair of the ICC World Chambers Federation (WCF), an organization that brings together more than 1,200 chambers and 45 million businesses worldwide. This appointment has undoubtedly translated into opportunities for our region, placing our entrepreneurs in the most important showcase of the business world and attracting world-class events. An example of the above was the First Ibero-American Summit on Sustainability and Innovation in Business, which represented a unique opportunity to discuss the latest trends and provide practical tools to MSMEs in these matters, and in which we were thrilled to have more than 1,000 attendees from 22 countries and 35 Ibero American chambers of commerce.
However, those mentioned above, and other achievements reached in 2022 are not only ours, but they are also part of a joint effort that we carry out with all the members of our international allies’ network For this reason, on behalf of the Bogotá Chamber of Commerce, I would like to share my best wishes for the new year, in which I hope we can continue working together to build a more prosperous society.
2. GOOD NEWS ABOUT COLOMBIA NATIONAL NEWS
• Colombia improves the reallocation of tax rights, competition between countries, and taxes on wealth and offshore income as a tool to optimize the agreements that have been reached in the past. This has been a call to work together to finance the recovery and face the price crisis that is going through, especially in energy and food. For more information, see the following link.
• Colombia and Venezuela consolidate their economic, trade, and investment relations, reaching agreements to generate certainties and transparent rules for bilateral exchange. The negotiation was concluded with an agreement for the reciprocal protection of investments, with greater legal certainty, addressi ng key issues such as access to markets, sanitary and phytosanitary measures, certification of origin , and dispute resolution, among others. For more information, see the following link
• The "Colombia at the Table" strategy of the Ministry of Commerce receives recognition within the framework of the FITUR 2023 fair, promoting attractive products, plans, and tourist packages around gastronomy. This strategy seeks to link gastronomy to business strengthening and brings together forces and resources of public and private actors for the development of the Colombian gastronomic tourism product. Currently, the strategy integrates the 32 departments in the country through work in nine regions formed according to cultural similarities and their gastronomic customs. For more information, see the following link.
• Colombia will receive 324 companies from 21 countries that will come to buy Colombian products and inputs in Colombiatex 2023, of which 130 companies will come for the first time. The main items that companies will look for are textiles for making uniforms, business and industrial equipment, sportswear, underwear, and swimwear, as well as complete package production. The Minister of Commerce, Industry, and Tourism, Germán Umaña Mendoza, highlighted the importance of this strategy of attracting international buyers, supporting national entrepreneurs, and promoting small and medium-sized companies. For more information, see the following link.
GOOD NEWS ABOUT THE BOGOTÁ-REGION
• "Hecho en Bogotá” a strategy that during 2022 benefited entrepreneurs from the capital, developed a different way of buying and selling in the city, promoting, and supporting local businesses, as well as providing skills training to increase their commercial development. Through this strategy, entrepreneurs have reached more than 67 fairs, developed in 18 locations in the city, impacting more than 1,500 products. Additionally, the program promotes the digital transformation of the capital through the creation of www.hechoenbogota.gov.co for all those businesses that want to be linked. For more information, see the following link
• Continúa cayendo el desempleo en Bogotá: entre septiembre y noviembre hubo 248.634 personas más ocupadas, un aumento de 6,7% frente al mismo trimestre del 2021. De acuerdo con el Departamento Administrativo Nacional de Estadística (DANE), Bogotá sigue en franca recuperación, y los sectores que más contribuyeron al aumento de la ocupación fueron: las industrias manufactureras, la administración pública y defensa, educación y atención de la salud humana, actividades artísticas, actividades de entretenimiento recreación y otras actividades de servicios. Para un mayor fortalecimiento, recientemente se lanzaron programas tales como “Empleo Incluyente” y “Pago por Resultados”. Para más información, consulte el siguiente enlace.
• Unemployment continues to fall in Bogotá: between September and November 2022, 248,634 more people found jobs. The latter represents an increase of 6.7% compared to the same quarter of 2021. According to the National Administrative Department of Statistics (DANE), Bogotá’s labor market continues to grow. The sectors that contributed the most to the increase in employment were manufacturing industries, public administration and defense, education and human health care, artistic activities, entertainment, recreation activities , and other service activities. For more information, see the following link
3. BCC NEWS AND UPCOMING EVENTS
• The Bogotá Chamber of Commerce, together with the Mayor's Office and FIRA Barcelona, will hold the Smart City Expo Bogotá 2023, the most important event in the world on smart cities, between May 31 and June 2. The purpose of the event is to highlight the importance of digitization to guarantee cities are prepared for the future, centered on people and the environment. The event will take place in Corferias to awaken a powerful urban tomorrow around the world. To learn more, see the following link
• La Alcaldía de Bogotá y la Cámara de Comercio de Bogotá realizarán un evento de presentación y vinculación de entidades aliadas del naciente Distrito de Ciencia, Tecnología e Información de Bogotá (DCTIB). Se trata de un espacio que servirá como catalizador para la reconversión social y económica de Bogotá – Región y promoverá y facilitará la interacción entre el sector privado, el sector público, la academia y la ciudadanía para que la generación e intercambio de valor. El evento tendrá lugar en el Centro de Convenciones Ágora el 1 de febrero. Para más información acerca del Distrito, consultar el siguiente enlace.
• The Mayor's Office and the Bogotá Chamber of Commerce held an event to present and link allies of the nascent District of Science, Technology, and Information of Bogotá (DCTIB). The District will serve as a catalyst for the social and economic conversion of Bogotá – Region, promoting and facilitating interaction between the private sector, the public sector, academia, and citizens to create value. The event took place at the Ágora Convention Center on February 1. For more information about the District, see the following link
4. ECONOMIC BEHAVIOR
4.1. GROSS DOMESTIC PRODUCT (GDP)
According to the DANE, in 2022 GDP continued to increase in 2022. As shown in graph 1, both the nation's and Bogota’s economies have maintained sustained growth since their lowest point in the second quarter of 2020, when they registered a decrease of 16.6% and 15.5%, respectively.
For the third quarter of 2022, Bogotá's GDP grew 9.3% compared to 2021, the year in which economic reactivation was encouraged after the crisis caused by the pandemic. Likewise, the nation's GDP grew 7.0% annually for the same period. Both economies were resilient in 2022, showing growth of 12.8% and 154% in the second quarter, respectively.
Source: DANE- SDDE (2022). 2019-2022. Elaborated by the BCC.
On the other hand, when comparing the real production of 2022 to that in 2019, we observe a slight improvement, that is to say that Bogotá and Colombia exceeded a higher production than the pre-pandemic in 2022, although growth begins to slow down, the economy is expected to continue growing in 2023.
4.2. INFLATION
In 2022, national inflation and that of Bogotá closed at 13.12% and 12.35%, respectively. Inflation in the capital stood 0.27 percentage points below that registered in the country.
This result reflects the price dynamics, especially the increase in food, energy, rentals, and services, which had a significant impact on inflation in 2022. In Bogotá, as in the rest of the country, growth levels were registered in the monthly prices above the periods prior to the pandemic, closing 2022 with one of the highest inflation rates in recent years.
Graph 1. Annual growth rate of Bogotá and Colombia’s GDP by quarter at constant prices between 2019 and 2022.4.3. EMPLOYMENT
Bogotá’s labor market registered a rebound, like the rest of the country, in 2022. For the September-November 2022 mobile quarter, the occupancy rate was 61.0%, that is, 3.2 percentage points more than in the same quarter of 2021. Thus, the unemployment rate dropped to 9.1% in Bogotá, this, after having been at 17.3% in the same quarter of 2020.
Colombia's occupancy rate for the September–November 2022 quarter stood at 57.4%. For its part, the unemployment rate closed at 10.0%, these being the best levels in recent months. When comparing the figures for the labor market of 2022 with those of 2019, it is observed that both Bogotá and the country are close to an employment rate with pre-pandemic levels, the trend is positive, and the employed population continues to grow
4.4. BUSINESS DYNAMIC
In Bogotá and the 59 municipalities of Cundinamarca under the jurisdiction of the BCC, the number of active companies increased compared to the previous year. It went from 469,156 active companies in 2021 to 498,705 in 2022, which meant an increase of 6.3%. Compared to 2019, the number of active companies decreased by 0.3%, having registered 500,072 active companies that year.
2022 was a year of economic reactivation; this can be seen in the renewal statistics of companies in the chamber’s jurisdiction, as it went from 384,029 in 2021 to 408,710 in 2022, an increase of 6.4%. In comparison to 2019, the figures for renewed companies are very similar; thus, it can be said that in 2022 the number of companies lost during the pandemic period was recovered.
Graph 3. Active Companies of Bogotá and Cundinamarca, 2019-2022.5. EVOLUTION OF FOREIGN TRADE EXPORTS
In 2022, foreign trade recovered its dynamism, mainly due to the sale of fuels. In the January-November 2022 period, Colombian exports were US$52,574 million FOB and registered an increase of 42.7% compared to the same period of 2021. An increase of 45.4% is also observed when compared to 2019.
During this period, exports of fuels and products from the extractive industries were US$29,606 million FOB and increased by 69.5% compared to the same period in 2021, those of agricultural products, food and beverages were US$10,623 million FOB and presented growth of 24.8%, compared to the same period of 2021, while those manufactures were US$9,660 million FOB and registered an increase of 19.9%.
The United States has remained the leading market for Colombian exports, with a 25.8% share of the total value exported. The U.S. is followed, in order, by: China, Panama, Netherlands, India, Turkey, and Brazil
Graph 4. Main destinations of Colombian exports, 2022 (January - November).
Bogotá and Cundinamarca were the second exporting region in Colombia in November 2022. Between January and November 2022, goods and services were exported for a total value of US$6,235 million, 29.3% more than i n the same period of 2021, representing 17.9% of the country's exports. In this period, Bogotá exported US$3,614 million FOB, 21.7% more than in 2021 (US$2,971), and Cundinamarca US$2,620 million FOB, 41.7% more than in 2021 (US$1,849 million). Compared to the same period in 2019, exports from Bogotá increased by 59.8%, while exports from Cundinamarca increased by 37.3%.
Source: DANE (2022). Elaborated by the BCC.
Graph 5. Exports from Colombia, Bogotá and Cundinamarca, 2019-2022 (January - November)
IMPORTS
In the period January-November 2022, Colombian imports amounted to US$65,517 million CIF and registered an increase of 35.5%, compared to the same period of 2021 and an increase of 49.4%, compared to the same period of 2019.
During this period, imports of manufactures were US$48,464 million CIF and increased by 30.1%, compared to the same period in 2021. Agricultural products, food, and beverages imports stood at US$9,569 million CIF and increased by 32.0% compared to the same period in 2021. Those for fuels and products from the extractive industries amounted to US$7,372 million CIF and presented an increase of 95.8% compared to the same period in 2021. Compared to the same period in 2019, Bogotá’s imports increased by 31.3%, while imports from Cundinamarca increased by 31.1%.
The United States was the main country of origin of Colombia's imports in the January-October 2022 period, with a 24.7% share of the total imported value, followed in order of participation by China (24.2%), Brazil (6.9%), Mexico (5.3%), France (3.3%), Germany (3.0%) and India (2.3%).
Graph 6. Main countries of origin of Colombian imports, 2022 (January – October)Bogotá and Cundinamarca ranked first in terms of imports by region in Colombia between January-October 2022. During this period, they registered a combined amount of US$35,741 million, which accounts for 54.6% of the country's total imports. Likewise, this number increased by 35.5% compared to the same period in 2021, in which the value amounted to US$ 48,345 million. In this period, Bogotá imported US$30,293 million CIF, 31.3% more than in the same period of 2021 when it imported US$23,080 Likewise, for January-October 2022, Cundinamarca imported goods and services worth US$ $5,448 million CIF, 31.1% more than in 2021 (US$4,154 million).
Source: DANE (2022). Elaborated by the BCC.
Compared to 2019, imports have increased their value in FOB dollars in Bogotá, Cundinamarca, and the nation by 49.4%, 35.5%, and 53.4%, respectively. During the period January-October 2022, Bogota's trade balance has been in deficit by US$24,579 million. The value of imports destined for the capital is 5.3 times the value of exports from Bogotá. Similarly, Cundinamarca's trade balance is negative when registering imports with a value of US$1,316 million FOB.
Graph 7. Imports from Colombia, Bogotá and Cundinamarca, 2019-2022 (January - October)
6. FOREIGN DIRECT INVESTMENT
According to the Ministry of Trade, Industry, and Tourism of Colombia, Foreign Direct Investment (FDI) stood at US$885 million as of November 2022. This means an increase of 25.6% compared to the same period (JanuaryNovember) of the previous year. For its part, investment in the oil and mining sector (77.6% of the total) increased by 40%. Investment in other sectors (22.4% of the total) fell by 7.6%. In the January-November 2022 period, FDI stood at US$10,346 million, that is, an increase of 58.9% compared to the same period in 2021.
Graph 8. Foreign Direct Investment. January-November (2014-2022)
Source: Central Bank- Exchange balance in the Ministry of Trade, Industry, and Tourism. November 2022.
7. SOURCES
• For more information, refer to the Bogotá Chamber of Commerce’s Economic Observatory. 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. Noviembre 2022. Recuperado de: https://www.dane.gov.co/index.php/estadisticaspor-tema/comercio-internacional/exportaciones
• DANE, Comercio internacional importaciones noviembre 2022. 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: chromeextension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.mincit.gov.co/getattachment/estudioseconomicos/estadisticas-e-informes/informes-de-inversion-extranjera/informes-de-inversion-extranjera(balanza-cambiari/2022/noviembre/oee-mab-informe-cambiario-a-noviembre-de-2022.pdf.aspx
• Observatorio de Desarrollo Económico de Bogotá. Recuperado de: https://observatorio.desarrolloeconomico.gov.co/expectativas/indice-de-confianza-industrial-vuelveterreno-positivo