Availability of credit

The Colombian economy counts with ample liquidity and credit availability high,.

 

Level of disposable income

The level of disposable income in Colombia its stable, due to the external debt, the decrease of well paid jobs, the growth of informal jobs, and the level has growth a little but no significantly. 

 

Propensity of people to spend

The annual propensity to consume in Colombia is 0.012 

 

Interest rates 

With the resolution certifying the current bank interest annual effective modality for the consumer credit and regular in 19.33 %, which represents a decrease of 30 basis points (-0.30 %) in relation to the previous certification (19.63 %) 

 

Inflation rates

The inflation of the Colombian market up to the month of July 2014, was 0.15

 

Money market rates

http://www.money-rates.com/mmarket.htm

 

Federal government budget deficits

 

 For 2014 is projected a deficit for the Consolidated Public Sector (CPS) of 1.3 % of GDP, down 0.1 percentage points of GDP by the preliminary closing of 2013. In the framework of the implementation of the Law of Fiscal Rule, the NCT presents a projected shortfall in 2014 of 2.3 % of GDP. This represents a reduction in the deficit of 0.1 percentage points of GDP compared to 2013. This result is consistent with a structural deficit of 2.3 % of GDP

 

Gross domestic product tendency

 

The Colombian economy will grow this year by 4.6 % and in 2015 a 5% mainly driven by the sectors of the construction, financial services and trade, as projections of the Citibank presented this Wednesday. If confirmed this projection, the Gross Domestic Product (GDP) this year and the next it would exceed the expansion of 4.3 per cent recorded by Colombia in 2013.

 

 

 

Consumption patterns

Food much more expensive, beverage sales and direct sales are the new stamps of sales in Colombia. More expensive foods that affect the disbursement of the lower income groups, higher expenses in drinks and a boom in the systems of direct sale in grooming items are some of the highlights

 

Uneployment trends

In Colombia the trend  is going down, now it is at 11,1%

 

Value the dollar in world markets

1 USD = $1924.4,  up to the day 24 of august 2014

 

Stock market trends

There´s a silent crash going in the stock market right now. (Annexed1)

 

Import/export factors.

Export

·         Openness to Foreign Investment

·         Conversion and Transfer Policies

·         Expropriation and Compensation

·         Dispute Settlement

·         Others

 Import

·      Using an Agent or Distributor

·      Establishing an Office

·      Franchising

·      Direct Marketing

·      Joint Ventures/Licensing

·      Selling to the Government

-     Others

 

Income differences by region and consumer groups

Annexed 2 

 

Price Fluctuations.

The annual rate of change of the CPI in Colombia in July 2014 has been 2.9 %, 1 tenth of a point higher than the previous month. The monthly CPI (Consumer Price Index) has been 0.2 % ,so that the accumulated inflation in 2014 is 2.7 %. It should be noted the rise of 0.4 % of the prices of food and non-alcoholic beverages, up to a year-on-year rate 3.3 %, which contrasts with the decline in the prices of leisure and culture of the -1.6% , and an interannual variation of the -1.0%

 

Monetary policies

Monetary policy in Colombia is governed by an inflation targeting system, whose purpose is to maintain a low and stable rate of inflation, and achieve a growth of the product in accordance with the potential capacity of the economy. This means that monetary policy objectives combine the goal of price stability with maximum sustainable growth in output and employment. In both the inflation targets are credible, these goals are compatible. In this way, monetary policy complies with the mandate of the Constitution and contributes to improving the welfare of the population

 

Fiscal policies

At the end of the first quarter of 2014 (1Q2014), the Central Government (GNC) reported a total surplus of $876 mm (0.1 % of GDP), in line with the goal of fiscal deficit and with the seasonality and the dynamics of the components of the balance sheet. This result is consistent with a primary surplus of 0.5 % of GDP, which is less than 0.3 percentage points (pp) for the same period of 2013. Depending on the components of the balance sheet, the income amounted to $30,171 mm (4.0 % of GDP) and expenses totaled $29,295 mm (3.8 % of GDP)

 

Tax rates

Tax on income and additional:

 income tax its complementary are national in nature, is considered as a single tribute and is structured into three components:
· 

Other types of taxes are in this page:

http://www.lataxnet.net/partners/Colombia/colombia-informacion_tributaria/

 

European Economic Community policies

 

 

 

The European Commission is committed to increasing accessibility in tourism by:

Raising awareness among stakeholders and economic operators in the tourism sector  

Other policies at the page : http://ec.europa.eu/policies/index_es.htm

 

 

 

Organization of petroleum exporting countries (OPEC) policies

 

The policies of the organization have been directed to defend oil prices and to maintain the purchasing power of the oil revenues of the member countries. Currently the biggest efforts of the organization are directed to achieve and maintain a stable oil market, contrary to what has been done in the past, when the emphasis was given to the establishment or administration of oil prices.

Since March 2000 the efforts were geared to achieve these objectives through a regulatory program production that limits the supply OPEC -and some non-OPEC countries that collaborate with the system - at levels that support a price band considered desirable for producers and consumers (22-28 USD/barrel).

 

Coalitions of lesser developed countries policies

 

IMPORT-SUBSTITUTING INDUSTRIALIZATION (ISI)

 

[1] Macroeconomic stability – low and stable inflation, low gov't debt

[2] Health – better health raises productivity, promotes long-term thinking

[3] Education – important for developing modern economy[i]

 

SEE ENTIRE DOCUMENT:

https://www.princeton.edu/~dixitak/Teaching/InternationalTrade/Slides/ECO352_20.pdf