By: Christian Breda
Chief Marketing Officer – AXCES.
2023 will be a challenging year for companies in Colombia due to the slowdown of the economy, even globally, and inflation that continues to rise along with interest rates, at levels that have not been reached for two decades.
Colombia is entering an era of adjustment. “This will be the gateway to a new stage that will see a healthy and sustainable slowdown that will bring GDP growth to 0.7 percent” according to an article in Semana Magazine.
For the Colombian economy, the increase in the cost of capital, derived from the strong depreciation of the exchange rate in the last two years and the increase in interest rates, will be influential; on the other hand, the increase in input costs, affecting profitability margins in the different sectors, and the uncertainty related to the loss of purchasing power, as a result of constant inflation, will have an impact.
The manager of Banco de la República, Leonardo Villar Gómez, highlighted that, “inflation expectations continue to be above target at all horizons“These predictions regarding inflation were ratified by the DANE with the publication of the annual change in inflation in Colombia which stood at 13.12%, a figure that has not been reached for approximately 21 years.
Under these forecasts, entrepreneurs must be prepared to face the challenges that come with the new year. Securing, planning, and executing prudent financial strategies will help them continue to grow as before and continue to operate in the marketplace. Other important factors will undoubtedly be managing debt and understanding your supply chains, two responsibilities that need to be kept in mind and addressed.
Today we are facing a scenario in which risk appetite on the part of traditional banks has been declining rapidly in the credit markets. This situation has given prominence to Fintech, allowing to obtain capital and manage cash flow with lower discount rates, with more flexible terms and conditions, more agile, with solutions that do not generate indebtedness to companies, in addition, no credit history is required.
If you are interested in this blog and want to know how to face this new financial landscape, AXCES is by your side and will accompany you throughout this “new normal”, with the firm purpose of supporting those who dream and work for a better future.