Financial analysts predict that investor confidence in Colombia’s stock market will be affected by Europe’s financial crisis, reported Caracol Radio Tuesday.
Analysts are worried that possible debt crisis in Spain and Italy may affect Colombian markets. According to Bancolombia’s director of economic studies, Daniel Nino, lack of confidence in European markets may generate a decrease in the Bolsa de Valores de Colombia (BVC). He said that while it is early to talk about an economic recession, the effects of a such a downturn would be increased unemployment and less economic growth. Nino added that any economic effects would be slight.
Jose Retrepo, director of economic studies at Interbolsa, downplayed possible effects, and said that he believes that Colombia is relatively shielded from the crisis experienced by the Eurpoean stock markets.