In six months, and with the arrival of President Gustavo Petro, businessmen have changed their minds about their intentions to continue investing in Colombia, not only because of the difficult macroeconomic outlook, but because of the moment of high uncertainty that the country is experiencing.
A survey carried out by the National Association of Businessmen of Colombia (Andi) made it clear that now there are more companies that consider that the best thing to do is defer or discard your investments.
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Specifically, in August 2022, 47.1 percent of those surveyed had stated that the investments were going to be maintained, but after six months they have changed their position and only 27.5 percent are currently thinking the same.
Entrepreneurs argue that this is because some projects started in previous years and must continue because they are necessary or relevant to the operation of the business (37.5 percent).
Other reasons are the good performance of sales that encourages them to continue with investment projects (16.3 percent), the market opportunities (12.5 percent) and commitment to customers (9.6 percent).
27.5 percent of businessmen are thinking of keeping their investments.
Additionally, 70.9 percent of the companies stated that they have had to face an increase in the cost of debt, which has affected their financial statements; 12.8 percent said that they present Cash flow difficulties and another 12.8 percent said that there have been decreases in profits.
High interest rates are also taking their toll on budgets. 20.9 percent affirm that they have had to postpone, modify or discard the investment plans they have, since their financing has become increasingly complicated.
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More entrepreneurs want to postpone investments
According to the Andi survey, the percentage of businessmen who have decided to postpone their investments in ColombiaWell, in August 2022 only 20.6 percent thought to do this and now it is 27.5 percent.
Among the reasons mentioned, high interest rates (47.9 percent) and political uncertainty (31.3 percent), economic (20.8 percent)legal (15.6 percent), macroeconomic factors worldwide (14.6 percent).
27.5 percent think of postponing their investments in Colombia.
The volatility in the exchange rate (12.5 percent) and inflation (12.5 percent) These are other factors that generate concern among businessmen in the country.
Meanwhile, the percentage of companies that now believe that the best path is discard their investments in Colombia it rose from 3.2 percent in August 2022 to 5.4 percent in February.
