Sources

Graph 3. Monthly CPI variation, according to expenditure division, Colombia and Bogotá, March 2022

Source: DANE - CPI

On the other hand, the monetary policy intervention rate is the minimum interest rate that the Central Bank charges financial entities for the loans it makes to them. This rate is the main monetary policy intervention mechanism used by central banks to control inflation. As can be seen in Graph 4, the interest rate has a tendency to react later to inflationary peaks, so it is expected that, if 12-month inflation is not controlled, interest rates will continue to rise to control the increase in prices.

Graph 4. Relationship between the Banco de la República interest rate and 12-month inflation

3.3 Labor Market4

In 2022, the National Administrative Department of Statistics, DANE, made a series of changes in its methodology for calculating the main employment indicators and the variables it reported; among the new changes, are the following:

1. New information collection framework, derived from the 2018 census. 2. New population projections, based on the 2018 census. 3. New conceptual and methodological approach for survey questions and data collection. 4. There are new information modules, such as rural and LGTBI+ populations, taxes, persons with disabilities and cities without their metropolitan area.

Taking this into account, the DANE has only published employment information for the year 2021 and the first two months of 2022. The unemployment rate in Colombia for February 2022 was 12.9%, while for the same month in 2021 it was 15.5%, a decrease of almost three percentage points.

4 Source: DANE, Great Integrated Household Survey. Taken from: https://www.dane.gov.co/index.php/estadisticas-por-tema/mercadolaboral/empleo-y-desempleo

The information available for analysis of the labor market in Bogotá shows that, in the moving quarter from December 2021 to February 2022, unemployment stood at 14.2%; however, comparisons with previous years cannot yet be made.

On the other hand, total employment in the country increased by 1.52 million between February 2021 and February 2022, from 20.16 million in 2021 to 21.68 million in 2022; therefore, total unemployment decreased between 2021 and 2022 by 500 thousand, from 3.71 million in February 2021 to 3.21 million in February 2022.

The gap in the unemployment rate between men and women continues to be high; in February 2022, this gap was 6.2 percentage points, given that men have an unemployment rate of 10.3% for this month and women registered an unemployment rate of 16.5%. However, this gap was lower when compared to February 2021, when a gap of 8.6 percentage points was recorded. Also, the number of employed persons increased by 516 thousand for men and by just over one million for women.

3.4 Business dynamics Bearing in mind that March 31 was the deadline established by the Law for commercial registration renewal, more than 305,000 business persons, both natural and legal, successfully completed their renewal. In addition, a total of 183,000 commercial establishments updated their economic activity, which allowed these entrepreneurs to access more than 500 free services from the Bogotá Chamber of Commerce to consolidate their reactivation in 2022. Thus, the total number of renewed production units registered an approximate increase of 4% compared to the same renewal period in 2021, and a slight difference of -1% compared to 2019, a comparable year prior to the pandemic.

3.5 Social Pulse Survey Consumer Confidence Index (CCI) This index is made up of 5 questions on the behavior of the household economy, the perception of the behavior of the economy in general and consumption of durable goods throughout the national territory. Graph 5 shows that, in January 2022, the CCI stood at 35.9% in total for the 23 cities, decreasing by 3.4 percentage points compared to December 2021 (39.3 %).

Graph 5: Consumer Confidence Index (CCI) - Monthly series - 23 cities

Source: DANE, (2022). Social Pulse Survey, February 2022. Similarly, the following relevant facts are noteworthy:

• In January 2022, 46.4% of families in the 23 cities reported that their situation was worse or much worse than 12 months ago, while in Bogotá it was 48.7% of families. This is a gap of 2.3 p.p. between the nation and Bogotá. • Bogotá decreased by 0.2 p.p. the percentage of households that considered their situation worse or much worse than 12 months ago between December and January. The nation´s increased it by 0.9 p.p. • Regarding the next 12 months, in the 23 cities, 36.4% of households consider that their economic situation will be better or much better, while in Bogotá it is only 21.7%. This represents a gap of 14.7 p.p. between

Bogotá and the total of the 23 cities.

• In the 23 cities, 63.8% of families stated that they did not have greater possibilities to buy clothes, shoes, food, etc.; for Bogotá it was 68.5% of families. This represents a gap of 4.2 p.p. between Bogotá and the 23 cities.

4. Evolution of foreign trade Exports5: Dynamics of Colombian exports: Exports in the country and the region show a significant recovery. In recent months, growth rates were higher than the period prior to the pandemic, which consolidates the country and the region as an attractive investment destination. In February 2022, Colombia's foreign sales, including oil and its derivatives, totaled US$4.202 billion FOB, which represents an increase of US$1.263 billion compared to the same period in 2021, which means there was an increase of 43.0% in the country's exports. Similarly, the level of exports exceeded the same period in 2020 by US$ 1.258 billion FOB, an increase of 42.8%. Graph 6. Colombian exports, February 2020, 2021 and 2022

Billions of dollars FOB

2020

2021

2022

2.943

2.939

4.202

Source: DANE - EXPO

Dynamics of exports from the Bogotá – Cundinamarca region: Exports originating in Bogotá increased from US$230.6 million FOB in February 2021 to US$425.2 million FOB in February 2022; this represents a growth of 84.4%. On the other hand, exports from Bogotá grew by 34.2% compared to February 2020, from US$316.9 million FOB to US$425.2 million in 2022, a biannual increase of US$ 108.3 million for exports from Bogotá. In Cundinamarca, an increase of 26.0% was observed in exports in February 2022 compared to the same period in 2021, from US$172.0 million FOB in 2021 to US$216.7 million FOB in 2022. Like Bogotá, Cundinamarca exceeded pre-pandemic export levels, since in February 2020 exports were registered at US$ 75.8 million FOB, an increase of 185.8%.

5 Source: DANE, Exports. February 2022. Taken from: https://www.dane.gov.co/index.php/estadisticas-por-tema/comerciointernacional/exportaciones

As of February 2022, Bogotá is the second department with the highest export levels in the country with 15.3% of the country's total exports and is surpassed only by Antioquia, with 21.3% of the country’s total exports. Cundinamarca is the fifth largest exporting department in Colombia, with 7.8% of the country's total exports. This makes Bogotá - Cundinamarca the top exporting region in the country, with 23.1% of the country's total exports. Graph 7. Bogotá – Cundinamarca region exports (not including oil and its derivatives) February 2020 – 2022

Millions of dollars

2020

75,8 316,9

2021

172,0 230,6

2022

216,7 425,2

Bogotá Cundinamarca

Source: DANE - EXPO

Imports6: Dynamics of Colombian imports: In January 2022, Colombian imports totaled US$ 6.050 billion, an increase of 58.3%, compared to the same period in 2021. Of total imports, 75.4 % were manufactured goods, 13.4% agricultural products, food and beverages and 11.2% fuels and extractive industry products. Dynamics of imports from the Bogotá – Cundinamarca region: Imports from Bogotá and Cundinamarca for the same period increased by 54.5% and 64.4%, respectively. External purchases of the region totaled US$ 3.410 billion in January 2022.

6 Source: DANE, International trade- imports. February 2022. Taken from: https://dane.gov.co/index.php/estadisticas-portema/comercio-internacional/importaciones

The Bogotá-Cundinamarca region, as is traditional, is first in total imports, with 56.4% of the total. Bogotá registered imports for US$ 2.839 billion and Cundinamarca for US$ 571 million. 13.9 % of imports destined for the Bogotá-Cundinamarca region correspond to fuels and mineral oils and their products. Purchases of electrical, recording or imaging equipment and material represent 13.2% of total imports, 10.4% corresponds to reactors, boilers, machines and parts and 8.7% to motor vehicles.

5. Foreign Direct Investment According to the Ministry of Trade, Industry and Tourism, Foreign Direct Investment (FDI) stood at US$1.563 billion in aggregate as of February 2022. This means an increase of 47% compared to the same period (January-February) of the previous year. Investment in mining-energy sectors stood at US $1.083 billion as of February 2022, which represents an increase of 39.4% compared to the same period in 2021. FDI in non-mining-energy sectors amounted to US $480 million in the same period, which represents an increase of 67.6% compared to the same period in 2021. Additionally, foreign portfolio investment in aggregate as of February 2022 was US $133 million, while a year ago it was negative by US $606 million. Finally, Colombia's direct investment abroad for the period January-February 2022 was negative by US $105.1 million.

Graph 8. Foreign Direct Investment. Period January – February (2014-2022)

Source: Banco de la República - Exchange balance from the Ministry of Commerce, Industry and Tourism. February 2022.

6. Behavior of the pandemic

As of April 20, 2022, a total of 82,241,178 doses of the COVID-19 vaccine have been applied nationwide. In total, the numbers are the following: 35,662,079 first doses; 28,935,107 second doses; 11,222,289 booster shots; 11,801 second booster shots; 6,409,902 single doses and 35,345,009 full vaccination schemes. According to the above, more than 70% of the Colombian population already has its full vaccination scheme, and 71% have received a first dose of the vaccine. Through the following graph you can see vaccination rates, by date, for the period between February 1 and April 20, 2022. 7

Graph 9: Doses applied by date. Period February 1 - April 20, 2022 Source: Ministry of Health and Social Protection

In Bogotá, as of April 20, 2022, a total of 14,688,391 doses of the vaccine against COVID-19 have been applied. This means that more than 63.55% of the capital´s population has a first dose of the vaccine and that more than 60.16% have the full vaccination scheme. As of April 20, a total of 5,057,220 doses of the COVID-19 vaccine have been applied in the department of Cundinamarca. This means that more than 35.33% of the department's population has received a first dose of the vaccine and that more than 29.87% have the full vaccination scheme.

7 Source: Ministry of Health and Social Protection. Taken from: https://www.minsalud.gov.co/salud/publica/Vacunacion/Paginas/Vacunacion-covid-19.aspx

Regarding the number of infections, as of April 21, 2022, a total of 6,090,520 cases have been registered since the pandemic began in the country; 5,923,901 have recovered, with 3,020 active cases and 139,759 deaths. The following graphs show the evolution of infections and deaths registered in the country due to COVID 19:

Graph 8: Daily infection and death trends reported in Colombia

Source: Covid 19 tracker. Reuters. Taken from: https://graphics.reuters.com/world-coronavirus-tracker-and-maps/countriesand-territories/colombia/

7. BCC news and upcoming events

• The Bogotá Chamber of Commerce held this year´s Innovation Week from April 19 to 22, a virtual event for audiences to learn from innovators who transform ideas and take risks to do things with a different approach, and to learn about successful experiences that promote creativity. In general terms, participants obtained tools to apply innovation as a formula for growth in their start-ups, companies and business ideas. For more information, please visit the following link.

• On Friday, April 8, the award event for the gastronomic contest was held as part of the Bogotá Marcando Estilo program, developed by the Bogotá Chamber of Commerce, in partnership with El Corte Inglés. Chef Jaime Torregrosa from the Humo Negro restaurant was the winner of this second edition of the contest, who will

participate in Madrid´s gastronomic week from May 19 to 23 and will be able to offer one menu course throughout the month of June in the 99 coffeeshops and restaurants of El Corte Inglés. Additionally, throughout that week several activities were carried out to promote gastronomy, fashion and tourism within the framework of the program. For more information, please visit the following link.

• From April 5 to 8, the first edition of ExpoBIC was held, the first stage in Colombia dedicated to promoting business transformation in the country, inspiring, training and connecting the business ecosystem, the public sector and academia to accelerate the new business system with the Collective Benefit and Interest model.

Within the framework of this important event, the Bogotá Chamber of Commerce recognized 300 businessmen from the region for having opted for this model. For more information, please visit the following link.

• The Bogotá Chamber of Commerce, in alliance with the LGBT Chamber of Commerce of Colombia, held the first inclusive labor fair in Colombia: “Expo Talento Diverso”. Within the framework of this event, which took place on April 8, nearly 40 companies participated, offering more than 1,600 vacancies available to members of this community. For more information, please visit the following link.

• On April 19, the Bogotá Chamber of Commerce, with the aim of offering business persons from the Bogotá

Region tools to do business with Dubai (United Arab Emirates), held the forum “Dubai – gateway to the MEASA region” in alliance with ProColombia. This event had the special presence in the country's capital of representatives of the Dubai Multi Commodities Center (DMCC), one of the most influential free zones in the world and home to more than 20,000 companies. For more information, please visit the following link.

• The Executive President of the Bogotá Chamber of Commerce, Dr. Nicolás Uribe Rueda, received a delegation from two companies belonging to the Korean conglomerate CJ Group, in order to discuss and promote the

Colombia-Korea Business Council, an entity led by the BCC and whose objective is to create a space for dialogue between the private sectors of the two countries to promote bilateral trade and investment. On behalf of the

Colombian private sector, Juan Valdez and Grupo Nutresa participated in this meeting.

8. Sources

• For more information, visit the Observatory of the Bogotá Chamber of Commerce at: https://www.ccb.org.co/observatorio

• DANE. National accounts. Taken from: https://www.dane.gov.co/index.php/estadisticas-por-tema/cuentasnacionales/cuentas-nacionales-trimestrales

• DANE. Labor market. Taken from: https://www.dane.gov.co/index.php/estadisticas-por-tema/mercadolaboral/empleo-y-desempleo

• Commercial Registry, BCC, 2019 - 2020 – 2021 - 2022. Taken from: https://www.ccb.org.co/Inscripciones-yrenovaciones/Matricula-Mercantil/Boletines-del-Registro-Mercantil/Boletines-ano-2021

• DANE. Social Pulse Survey. Taken from: https://www.dane.gov.co/index.php/estadisticas-por-tema/encuestapulso-social

• DANE, Exports, March. 2022. Taken from: https://www.dane.gov.co/index.php/estadisticas-portema/comercio-internacional/exportaciones

• DANE, International trade imports, March 2022. Taken from: https://www.dane.gov.co/index.php/estadisticaspor-tema/comercio-internacional/importaciones.

• Ministry of Commerce, Industry and Tourism. Foreign Direct Investment Reports. Taken from: https://www.mincit.gov.co/estudios-economicos/estadisticas-e-informes/informes-de-inversion-extranjera

• Ministry of Health and Social Protection. Taken from: https://www.minsalud.gov.co/salud/publica/Vacunacion/Paginas/Vacunacion-covid-19.aspx

• Covid 19 tracker. Reuters. Taken from: https://graphics.reuters.com/world-coronavirus-tracker-andmaps/countries-and-territories/colombia/

• DANE. Business Pulse Survey. Taken from: https://www.dane.gov.co/index.php/estadisticas-portema/comercio-interno/encuesta-pulso-empresarial

• Bogotá Economic Development Observatory. Taken from: https://observatorio.desarrolloeconomico.gov.co/expectativas/indice-de-confianza-industrial-vuelve-terrenopositivo