Scotiabank Risk Overview slide image

Scotiabank Risk Overview

Colombian Economy Strong underlying momentum Economic activity is resilient: Services sector is leading the growth. Soft landing deceleration is the most likely scenario. GDP is expected to grow 8.1% in 2022 and 1.5% in 2023 The Government acts under the institutional framework, and the Tax Reform process shows institutions' works. Congress show that check and balances is still working. The Government will comply with the fiscal rule, which is also an independent institution aiming to guarantee fiscal sustainability, and the fiscal rule is a priority for the Government Banrep pointed out that the end of the hiking cycle is closer. Inflation is increasing at a slower pace and going through the peak. The next discussion will be how long the rates will stay in high levels GDP 2022E: 8.1% GDP 2023F: 1.5% GDP 2024F: 2.5% 13.4% Finance, Insurance, & Real Estate 9.8% Other 5.7% Natural Resources 3.2% Information & Communication 4.0% Arts & Entertainment COLOMBIAN GDP BY INDUSTRY (Q3-2022) 7.0% Professional, Scientific, & Technical Services 18.0% Wholesale, Retail Trade, Accommodation & Food Services 15.2% 12.3% Manufacturing 6.7% Mining and Oil & Gas Extraction 4.8% Construction Public Administration Sources: Scotiabank Economics, Bloomberg, as of Feb 10, 2023. Contributions to Colombian GDP Growth 20 y/y % change -20 ཐྭ༅n༠ཐྭཔྟཱཿཋ༞{ 15 10 5 0 -5 -10 -15 -25 Other* Investment Consumption Net Exports Government Real GDP 20 21 19 18 *Statistical discrepancy, subject to revision. Sources: Scotiabank Economics, Haver Analytics. 22 22 Top Trading Partners* United Others States 43% 30% Brazil 5% China 9% India 7% Netherlands 5% * Trade data updated as of Q3-2022. 66 99
View entire presentation