1. Guest Columnist 2. Good news from Colombia and Bogota-Region
CCB News & Upcoming Events
Economic Developments 1. Gross Domestic Product - GDP 2. Economic Monitoring Indicator
Inflation 4. Labor market
5. Evolution of Foreign Trade
Foreign Direct Investment
7. Sources
BUSINESS OPPORTUNITIES IN A CONTEXT OF FAVOURING LOCAL CONSUMPTION AND PROTECTIONIST
In the current environment, characterized by a strong trend towards boosting local consumption and the tightening of protectionist policies in various economic and commercial regions, international business opportunities face significant challenges.
Growing protectionism has created additional barriers to the entry of foreign products, making it difficult for many companies to access new markets, especially MSMEs looking to expand internationally. However, these restrictions also drive companies to innovate and adapt, finding creative ways to seek international opportunities that allow them to publicize their products.
It is in this context that institutional arrangements play a crucial role. A clear example of this is the relationship between the Chamber of Commerce of Bogotá and El Corte Inglés. Sectoral collaborations such as the one established in the field of gastronomy can open international doors.
This agreement has not only allowed the promotion of Colombian gastronomy, but has also created a bridge for young chefs to access new markets and position themselves in an international environment that is new to them. This is the case of the winner of the BME24 (Bogotá Marcando Estilo) gastronomic contest held in Bogotá, for which the winning chef, Cristian Ramírez, traveled to Spain to lead a sample of Colombian gastronomy that can be tasted in all El Corte Inglés restaurants in Spain for a month.
The incorporation of young talent, who travels, and who knows the world is vital to enrich the sector. These young people bring with them new products, ideas, perspectives, and practices that can transform industries. Their exposure to different cultures and working methods allows them to acquire valuable skills and knowledge, making them the best prescribers of products and brands in their country.
On the other hand, it is important not to ignore the influence of extreme social and political positions and their devastating effects on purchasing and consumption policies. I am referring to the importance of the "isms". Neither the firmest globalism, which despises the local by slowing down its development, nor the most extreme localism, which does not allow consumers to enjoy the novelty provided by distant flavors and cultures. A balanced approach is essential to foster both local development and global diversity, providing our clients with a fresh air of novelty, without giving up what is their own or close and that is part of their cultural identity. It is in that fine balance that we find room for everyone.
It is here that institutions such as the Bogotá Chamber of Commerce and El Corte Inglés, through its hospitality area, promote diversity, curiosity and opportunities, finding the balance between the local trend with a global vision, in which the strengths of each market are used to create value, culture and growth.
JAVIER CERRO
Purchasing Director Non-retail Food and Trade Marketing - El Corte Inglés
Industrial production in April 2024 increased 4.1% thanks to the manufacturing sector According to the Ministry of Commerce, Industry and Tourism (MinCIT), this upward behavior is explained by the progress of various instruments of the country's industrial policy, including the Zasca, the Productivity Factories, support for micro, small and medium-sized industries, the support of the productive apparatus and the progress towards a sustainable economy based on knowledge. For more information, please consult the following link
Colombian ingredients and flavors take over gastronomic scenarios around the world. The gastronomy of the Land of Beauty stands out in the world. This is confirmed by the multiple recognitions that Colombian products and destinations have received during the last month. In different competitions, Colombian dishes stand out among the richest in Latin America, not only for the variety of flavors and climates, as they alternate between dry and wet seasons, but also for the fusion between the regions and the fertility of the land. For more information, please consult the following link.
Exports of non-mining goods grew 6.9% at the end of April. In volume, it was the largest amount exported in history for a January-April period: 3,034,654.7 tons . For more information, please consult the following link
Cartagena de Indias will host the 122nd UN Executive Council of Tourism. The decision was made during the plenary session of the 121st meeting of this Council, which was held this Tuesday at the World Trade Center in Barcelona, Spain, where Colombia obtained 21 votes in favor. This designation exalts the role that the country has assumed as a member of the UN Executive Council of Tourism for the period 2023-2027, as well as the infrastructure and logistics capacity that Cartagena has to host high-level events. For more information, please consult the following link.
Key commitments of the District seek to strengthen Bogota's role as a technology and innovation hub. On the way to consolidating its role as a Latin American hub for technology and innovation, Bogota is preparing a series of bets to strengthen its productivity and competitiveness and consolidate itself as a regional benchmark in these issues, especially the
urban transformation project, called the Bogotá Science, Technology and Innovation Campus (CTIB). For more information, please consult the following link.
The mayor of Bogotá led this Wednesday, June 12, 2024, the first International Cooperation Table for the city's Circular Model of Solid Waste Management. This meeting marks an important milestone in the history of environmental management in the capital, as it is the first time that a collaboration with international actors has been established. For more information, please consult the following link
Development Plan: 'Bogotá, a city with open doors to the world'. The District Development Plan 2024 - 2028 marks a milestone by including for the first time an ambitious internationalization strategy to strengthen and articulate the international governance of the city; promote international dialogue on issues of security, coexistence and justice; increase students' exposure to foreign languages and foster cooperation in the cultural sector. For more information, please consult the following link.
The Bogota Chamber of Commerce launched the PyBA-CCB: Animal Protection and Welfare Cluster. This initiative is designed to promote the development of new businesses in products, goods and services aimed at companies, enterprises and social actors, with the purpose of strengthening and growing the economy focused on the protection and welfare of companion animals (cats and dogs). For more information, please consult the following link.
The Bogota Chamber of Commerce successfully held the event #SomosSostenibles. The initiative seeks to mobilize the conversation around the importance of environmental sustainability, climate change management, water and the circular economy, to strengthen the capacities of companies in Bogotá and the Region, and thus support their economic growth and generation of value for society. For more information, please consult the following link
Bogota and the region will contribute their sustainability expertise to the country and the world with their participation in COP16. Ovidio Claros Polanco, president of the BCC, announced within the framework of the event #SomosSostenibles that the entity will participate in the COP16, with the purpose of sharing experience in cutting-edge services to promote sustainability and how it has materialized in more profitable companies that contribute socially and environmentally. For more information, please consult the following link.
4.1
Bogota is the department with the highest participation in GDP, in 2023 it registered 393,237 billion pesos, which represents 25%, that is, a quarter of the national GDP. Cundinamarca ranks fifth in terms of departmental GDP share in 2023, registering 99,388 billion pesos in the same reference year, which represents 6.3%. Thus, the Bogotá – Cundinamarca region participates with 31.3% of the total GDP; compared to 2022, it presented an increase of 0.5 percentage points and compared to 2021, it registered a reduction of 0.3 percentage points.
In Bogotá, in 2023, the economic activities with the highest participation in GDP are Wholesale and Retail Trade 22.7%, followed by Public Administration and Defense 14.6% and Real Estate Activities 11.1%, which indicates a greater productive vocation in the trade and services sectors.
Figure 1. Growth rates in annual volume, chained series of GDP by department, between 2013 and 2024, Bogotá, Cundinamarca and Region
Source: DANE
According to the Economy Monitoring Indicator (EMI), in the month of April 2024, there was a variation in the EMI of 2.0%, compared to March 2024, when a fall of -0.9% was recorded.
In April 2024, the activities that showed the highest annual increase in the EMI were Public Administration and Defense (13.0%) and Agriculture, Livestock, Hunting, Forestry and Fishing; Mining and quarrying (10.2%). On the other hand, only the Information and Communications activity showed an annual reduction of 1.1% during the period of analysis.
Bogota experienced an increase in the monthly price variation in May 2024 compared to the same month of the previous year, while in Colombia the monthly variation remained the same. In May 2023, the monthly variation in Colombia was 0.43% and in Bogotá 0.34%, while in May 2024 it was 0.43% and 0.46%, respectively.
Table 1. Monthly and annual inflation in Colombia and Bogota during MAY 2023-2024.
Source: DANE - Consumer Price Index (CPI).
For its part, Colombia's annual price variation fell from 12.36% in May 2023 to 7.16% in May 2024, while the annual price variation in May 2024 in the capital shows a reduction of 5.05 percentage points compared to the same month in 2023, going from 12.29% to 7.24%.
In the spending divisions of Colombia, for May 2024 they show that the spending division with the greatest drop was Information and Communication, which presented a negative variation of 0.16%. On the other hand, in Bogota, the Restaurants and Hotels division ranked first with a variation of 1.07%. It was followed by the divisions of Food and non-alcoholic beverages, 0.93% and Accommodation, Water, Electricity, Gas and Other Fuels, 0.60%. As for the divisions that fell, in Bogotá two spending divisions presented the largest negative variations: Information and Communication, and Alcoholic Beverages and Tobacco fell 0.27% and 0.38%, respectively.
Figure 3. Monthly CPI change, for the 23 main cities of Colombia, May 2024 (change in %)
Source: DANE - Consumer Price Index (CPI).
As for the intervention rate, the main monetary policy intervention mechanism used by central banks to control inflation, the Bank of the Republic (Banco de la República) continues with a strong policy and keeps the intervention rate high. However, it is also observed how between 2023 and 2024 there has been a significant slowdown in inflation thanks to this policy. Based on this result, the board of directors of Banco de la República on April 30, 2024 decided to reduce the interest rate to 11.75%. In addition, the monetary authority in its April monetary policy report projected total and core inflation of 5.5% and 5.1%, respectively, for 2024.
Employment has shown a deterioration compared to the previous year; At the national level, the unemployment rate in April 2024 was 10.7%, 0.1 p.p. lower than in April 2023, similarly, the employment rate has decreased 0.5 p.p. in the last year, standing at 57.2% by April 2024. The overall participation rate varied by 0.6 p.p. and stood at 64.0% in April 2024, a figure lower than that presented in the same period of the previous year, 64.6%.
Source: Great Integrated Household Survey - GEIH (DANE), April 2024.
In the case of Bogotá and its metropolitan area, the unemployment rate stood at 10.1% for the February - April 2024 mobile quarter, a figure lower than the 11.2% of the national total for the same periodicity; For the same mobile quarter, the capital shows an employment rate of 64.2%, 7.5 p.p. above the national occupancy rate for the same quarter, which stood at 56.7%. The data show that more people of working age are participating in the labor market in the capital (71.4%) than in the country (63.9%).
The number of employed people grew by 123 thousand people from April 2023 to April 2024, and the number of unemployed people fell by 0.3%, which means 8 thousand fewer people in a condition of non-employment (previously, called "unemployed").
In April 2024, Colombia experienced an increase in its exports of 17.9% compared to the same month of the previous year, Bogotá showed a growth of 31.5%, and Cundinamarca also registered an increase of 12.9%.
Graph 4. Annual Variation of Colombia's Exports in Bogotá and Cundinamarca 2021-2024
Colombia Bogotá Cundinamarca
Source: DANE, International Trade.
In April 2024, Colombia presented exports of $ 4,408.8 million FOB dollars. Bogota, on the other hand, maintained positive growth, reaching $387.2 million FOB dollars for that month. Also, Cundinamarca experienced an increase in its exports, reaching $219.9 million.
Total exports from the Bogota-Cundinamarca region reached a value of $607.1 million FOB dollars. The United States stood out as the main destination for exports, with a total of $217 million FOB dollars, which is equivalent to 35.7% of the general total. Ecuador ranked second on the list with $51 million FOB dollars, representing 8.4% of the total, while Peru came in third place with 33 million FOB dollars, and with a share of 5.5%. Mexico and China also stood out as relevant destinations with $33 million (5.4%), and $28 million (4.6%) respectively. Venezuela contributed $24 million (3.9%) and Brazil contributed $18 million (3.0%); The Netherlands, Chile and Turkey contributed $18 million (3.0%), $15 million (2.5%) and $13 million (2.1%), respectively, to the region's exports.
Exports to other countries, grouped under "Other countries", represented $157 million FOB dollars, which constitutes 25.8% of the overall total, a significant contribution in terms of participation in the month of April 2024.
Figure 5. Exports by destination countries. Bogotá – Cundinamarca, April 2024
Other Countries; 25.8%
Chile; 2.5% Turkey; 2.1%
Netherlands; 3.0%
Brasil; 3.0%
Venezuela; 3.9%
China; 4.6%
México; 5.4%
Unites States; 35.7%
Ecuador; 8.4%
Perú; 5.5%
Source: DANE, International Trade.
Cundinamarca also experienced an increase in its imports, reaching $497.5 million CIF dollars in April 2024, which is an increase of 14.1% compared to April 2023. Cundinamarca's share of national imports went from 8.8% in April 2023 to 8.5% in April 2024.
The Bogota-Cundinamarca region, which includes Bogota and Cundinamarca, recorded imports worth $3,427.3 million CIF dollars in April 2024, representing an increase of 20.4% compared to the same month of the previous year. This region's share of domestic imports went from 57.6% in April 2023 to 58.7% in April 2024.
Figure 6. Imports by country of origin. Bogotá – Cundinamarca, April 2024
Other Countries; 27.7%
United States; 25.8%
Vietnam; 2.0%
Italia; 2.4%
Nigeria; 2.5%
Japón; 2.8%
Netherlands; 4.6%
Brasil; 4.9%
China; 21.5%
México; 5.9%
Source: DANE, Imports.
The region's main trading partners were the United States and China. The United States led with $885 million CIF, representing 25.8% of the total, followed by China, which contributed $736 million CIF, representing 21.5% of the total. These two countries account for almost half of all imports from the region (47.3%).
Mexico, with $202 million CIF, ranked third in importance, contributing 5.9% of the total. Brazil and the Netherlands also played a relevant role, contributing $167 million (4.9%) and $156 million (4.6%) respectively. Japan and Nigeria reached $98 million and $85 million CIF respectively, while Italy and Vietnam submitted contributions of $81 million and $68 million CIF dollars.
Finally, "Other Countries" contributed $950 million CIF, representing 27.7% of the region's total imports, underscoring the diversity of import origins beyond the main partners mentioned.
During the first quarter of 2024, the country received US$ 3,620 million (m) in FDI, equivalent to 3.6% of quarterly GDP. These resources were lower by US$ 489 million compared to the same period in 2023, and by US$ 162 million compared to the immediately previous quarter.
Regarding FDI flows by country of origin, during the first quarter of 2024 resources came mainly from: the United States (US$ 1,612 million), Anguilla (US$ 481 million), Spain (US$ 443 million), Panama (US$ 317 million), England (US$ 148 million), the Netherlands (US$ 140 million), Switzerland (US$ 83 million) and Mexico (US$ 82 million, Figure 3). The decrease compared to the first quarter of 2023 in FDI (US$ 489 million) is mainly explained by lower investments from Switzerland, Bermuda, England, France, Chile, Spain, the Cayman Islands, Virgin Islands and Singapore, partially offset by higher investments received from the United States, Panama and Anguilla.
For May 2024, foreign direct investment was US $757 million, presenting a drop of 22% in relation to the indicator reported for the same month in the previous year. So far this year to May, Colombia's Foreign Direct Investment totaled US$5,455 million, which has reported a decrease of 5.9% compared to US$5,799 million in the same period of time in 2023.
1. For more information, please refer to the Observatory of the Bogotá Chamber of Commerce. https://www.ccb.org.co/observatorio
2. DANE. National accounting. Retrieved from: https://www.dane.gov.co/index.php/estadisticas-portema/cuentas-nacionales/cuentas-nacionales-trimestrales
3. DANE. Labour market. Information retrieved from: https://www.dane.gov.co/index.php/estadisticaspor-tema/mercado-laboral/empleo-y-desempleo
4. Commercial Registry, CCB, 2019 - 2020 - 2021 - 2022 - 2023 - 2024. Retrieved from: https://www.ccb.org.co/Inscripciones-y-renovaciones/Matricula-Mercantil/Boletines-del-RegistroMercantil
5. DANE. Social Pulse Survey. Retrieved from: https://www.dane.gov.co/index.php/estadisticas-portema/encuesta-pulso-social
6. DANE, International Trade. Retrieved from: https://www.dane.gov.co/index.php/estadisticas-portema/comercio-internacional
7. Bank of the Republic. https://www.banrep.gov.co/sites/default/files/nota_de_prensa_inversion_directa.pdf