Colombia ready to face possible economic crisis: Deutsche Bank
Colombia ready to face possible economic crisis: Deutsche Bank
posted by Wesley Tomaselli
Sep 16, 2013
Colombia is one of the few countries best poised to face severe macroeconomic challenges in the years ahead, reported financial magazine America Economia on Monday, citing a report authored by Deutsche Bank Chief Economist Gustavo Cañonero.
Despite a roiled agriculture sector, slack in industrial productivity, continued problems with security for some businesses, and severe levels of poverty and inequality, Colombia’s fiscal and monetary policies, along with high rates of investment, has put it in a good position to face what Cañonero says is “an eventual international crisis.”
“The relatively high rates of investment in (Colombia, Chile and Peru)… in some way, reflect the best structure of those economies, that continue attracting international interest… they are growing more quickly than other economies in the region and in a sustainable manner,” Cañonero said in a report.
Colombia’s debt levels are low compared to its neighbors, it has managed to keep its peso relatively weak against the dollar, and a recent oil & mining boom has fueled the country with royalties. With interest rates at 3.25%, Colombia has kept financing cheap.
More:
http://colombiareports.co/colombia-ready-face-economic-crisis-deutsche-bank/