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5 May 2015
Signs of slowdown in the Colombian economy – Scotiabank
FXStreet (Edinburgh) - Eduardo Suarez, Chief FX Strategist at Scotiabank, believes the Colombian economy could be slowing down its pace.
Key Quotes
“Today is going to be a busy day in Colombia from a data release standpoint, with CPI, monthly economic activity and exports data all in the pipeline”.
“Inflation is expected to moderate somewhat to a still above target 4.44% y/y (from 4.56% y/y in March), while growth is also expected to soften to +2.8% y/y (from 3.0% y/y in January)”.
“As we have argued in the past, our sense is the Colombian economy is still in the relatively early stages of a slowdown, with domestic demand still proving more resilient than we anticipate it will be”.
“Our sense is that potential GDP growth will be lower than it has been in the past (we think it will be closer to 3.0% ‐ 3.5%), which will have implications for monetary policy, in our view”.
Key Quotes
“Today is going to be a busy day in Colombia from a data release standpoint, with CPI, monthly economic activity and exports data all in the pipeline”.
“Inflation is expected to moderate somewhat to a still above target 4.44% y/y (from 4.56% y/y in March), while growth is also expected to soften to +2.8% y/y (from 3.0% y/y in January)”.
“As we have argued in the past, our sense is the Colombian economy is still in the relatively early stages of a slowdown, with domestic demand still proving more resilient than we anticipate it will be”.
“Our sense is that potential GDP growth will be lower than it has been in the past (we think it will be closer to 3.0% ‐ 3.5%), which will have implications for monetary policy, in our view”.