Economic data show that Colombia is steadily growing again. Like every other country, Colombia’s monetary policies are providing the necessary succor for the economy and the country-related ETF.
- Colombia’s Statistics Department reported that sales fell 0.9% in August from the same month last year and industrial output dropped 3.3%, which were the smallest contractions in 10 and six months respectively , writes Inti Landauro for The Wall Street Journal. Analysts cite the decline in consumer credit and rising ratio of bad loans to total loans as indicators for the floundering consumer demand.
- Colombia’s economy is also fettered by lower exports as a result of recent restrictions imposed by Venezuela, the second-largest market for Colombian exports. Finance Minister Oscar Ivan Zuluaga says the government will ease peso gains, helping the domestic exporters.
- Carlos Ramos, economist with Interbolsa brokerage firm, thought the data was better than expected and believes the Colombian economy will start to recover in the fourth quarter.
- The Colombian Central Bank kept interbank rates unchanged at 4% and will increase liquidity by purchasing $1.56 billion in U.S. dollars and TES bonds, report Helen Murphy and Alexander Cuadros for Bloomberg. The Central Bank set a 2010 inflation target of 2% to 4%. Inflation for the year is expected to fall below the target range of 4.5% to 5.5%.
- Global X/InterBolsa FTSE Colombia 20 ETF (NYSEArca: GXG): up 14.8% in the last three months; GXG delivered 33.9% in the third quarter and 101.7% since inception in February
Max Chen contributed to this article.