Ben Ramsey, an analyst at JPMorgan Emerging Markets, on Thursday described Colombia as “a country with a very positive outlook.”
In an interview with newspaper El Espectador, the analyst commented on the ongoing peace negotiations between Colombia’s government and rebel group FARC, suggesting that the outcome may not necessarily affect investor confidence in the country.
“We all hope that the peace process is positive, because the country has suffered a lot,” said Ramsey.
“But do not think that there are people waiting to enter when you sign an agreement. Investors already know that Colombia is a good place, with great prospects.”
In relation to the recent multi-sector, nationwide anti-government demonstrations, Ramsey claimed that the impact on consumer confidence would be greater than the impact on the economy itself.
“The demonstrations are not thought to have had an impact on the macroeconomy itself. However, they have had an impact on quite important variables, such as consumer confidence, which is emphasized by the lack of popular support for the President.”
But Ramsey warned against reading too much into the pessimism.
“Be careful with some surveys that have emerged in the context of the agricultural strikes, which may show exaggerated figures,” he cautioned. “We see that consumer confidence declined significantly in August and we have to analyze the impact this period has had on the entire year. Demand in the first six months showed high levels.”
The analyst stressed that Colombia has a positive outlook in both the medium and long term.
“It is a place where many investors want to be because of the domestic demand, because of the expectation of the Pacific Alliance, and the large potential market when compared to other countries who have very similar macroeconomic policies,” explained the analyst.
“There are reasons to be optimistic.”
Colombia, con buenas perspectivas (El Espectador)