economy and politics

What is behind the growing uncertainty and how it is related to low investment


Low investment is one of the factors that has driven the slowdown of the Colombian economy. Several analysts have pointed out that this behavior is mainly due to interest rates and uncertainty around the political, economic and business panorama.

(Read more: Economic analysts increase inflation expectations in Colombia for 2024)

Precisely, regarding this last point, the Fenalco merchants' union identified the causes that have shaped this scenario of concern that has also had an impact on the confidence of businessmen and consumers. In that sense, the association highlights 12 factors.

What explains the growing uncertainty?

First of all, Fenalco points out the impact that President Gustavo Petro's proposal to call a constituent assembly. An initiative that was put on the table given the tense atmosphere in which the reform process was taking place.

A second factor that explains the growing uncertainty has to do with the announcements that were made regarding Possible changes in the delivery of future validity periods for the execution of infrastructure works. Added to this is the insistence of the head of state to include an underground section in the Bogotá Metro project.

As a fourth point, the lack of clarity of the first version of the decree liquidating the National Budget for this year was identified, which was the subject of debate as a result of the irregularities that the text presented.

The increase in insecurity in fields and cities, as well as the statements that have been made regarding the probability of a lack of sources Public bodies are also part of the list of causes.

(Read more: Financial infidelity in couples, another reason that causes divorces)



(See: The reasons why the Issuer is applying moderate rate cuts)

The seventh point refers to President Petro's statements against the Registrar's Office and the SIC's visits to this organization. Besides, of the departure of the director of the National Planning Department (DNP).

Along these same lines, among the reasons that have driven a scenario surrounded by uncertainty are also: the disclosure of the Heritage Foundation's Index of Economic Freedom, the possibility of presenting a new tax reform, the processing of social reforms in Congress and the announcement that the debt with the IMF would be renegotiated.


Source link