Increasing of new millionaires: While the levels of poverty and violence are decreasing in the country. In recent years, economic growth has led to a considerable increase of new millionaires: 1. 8 million adult Colombians are now newly rich. Colombia was the Country where private wealth grew more between June 2011 and June 2012, according to Credit Issue. In the country have increased the number of Colombian entrepreneurs on he list of the richest people on the planet with net worth exceeding $ 1 billion.
This means that there are a lot of potential consumers for the Luxury fashion and accessories brands. 4. Expecting evolution of economy for Colombia: A positive economic outlook is maintained: Despite recent signs of economic deceleration in the medium-term, the country is expected to maintain healthy activity rates. This forecast is based on the new stimulus plan that the government will have to implement in order to stimulate growth, and which will consist of reductions in energy costs, higher public spending n infrastructure, and additional fiscal, monetary and commercial measures.
Furthermore, the prospect of the global economy’s gradual recovery, supports this positive scenario. A favorable inflation outlook in the medium-term: The inflation is likely to remain at around 3%. Furthermore, in the medium-term significant pressures are not expected to be exerted on the supply or demand side. Given the circumstances of a growth rate below potential and anchored inflation expectations, we expect the central bank to maintain its expansionary monetary logic in the coming quarters, which involves maintaining the reference rate at around 3. %, in order to stimulate economic activity. Source: CELLS (Centre De Studios Altercation’s) 5. Debt Sustainability in Latin America According to the most problematic results possible scenarios of a new crisis we have three groups of countries that we saw during our Latin America’s course, Colombia is one of the countries group 3: Countries seem to be able to maintain fiscal solvency in the case off negative shock: Bolivia, Chile, Colombia, Paraguay and Peru.
I think that Colombia is the more interesting country of Latin America to export Luxury brands, in fact, Colombia is the fastest growing luxury market in South America. The demand is growing fast because of the increasing of the number of millionaires and upper middle class segment, and the concurrence in this industry is poor for the moment. The development of shopping galleries or smaller scale premium malls with a clear concept could bring high returns on investment for developers. The international relations, especially with the European Union are great (Trade agreement).
The government launched strong plans: reductions in energy costs, higher public spending on infrastructure, and additional fiscal, monetary and commercial measures, Reduction of poverty. Colombia is one of the pro-market countries which presents: Better economic stability Stable Judicial and regulatory systems Ability to attract foreign investment Clear and better defined market rules Sustained growth and integration to international markets References http://www. Complementarities. Com/ http://en. Wisped. Org/wick/Colombia http://www. Cap-luxury. Com/Colombia-the-fastest-growing-luxury-market-in-south-
