Oct 27

Partnership Can Benefit Peru And Colombia

How many times have you heard the phrase: "The kids are growing ..."? Probably many. And moving this to the reality of Latin American countries, the current situation shows us economies such as Peru or from Colombia who have experienced a significant qualitative leap in recent years. The economies of Peru and Colombia have been showing an amazing consolidation in recent years, governments have given priority to compliance with the rules and implementation of policies that prioritize long term and not seeking immediate benefits. So, as I have said before, the result of sound macroeconomic policies has been implemented Peru, the country has benefited from the recognition of investment grade and with the agreement to join the OECD. On the day yesterday, from the IDB is predicted for this year and next year, the Peruvian economy will be to observe the highest growth in the region (that year may reach 9%). The Colombian economy is also achieved important successes, with a strong growth in recent years and although inflation is currently being felt, it is a problem in the short term because the Colombian economy is marching on the right path and macroeconomic fundamentals remain strong. That is why foreign investments into the country grow at a rate more than acceptable.

Colombia's economy is that productive sectors offers multiple investment opportunities, such as tourism, oil exploration, the infrastructure sector, among others. Each one by his side, the economies of Peru and Colombia continue to grow ... Even now are also looking to do together. Is that pockets of Colombia and Lima are exploring options for a possible integration of stock markets. The president of the Lima Stock Exchange, Roberto Hoyle, said in a statement: "We are very interested in the possibility of a future integration of our equity markets and in the next phase of fixed income. Such approaches are of great importance to strengthening our markets. " How does the integration of equity markets can benefit the economies of Peru and Colombia? While not major stock markets, one can imagine that this integration could enhance their growth and benefit to investors who thus find a greater variety of investment opportunities and allow for better risk diversification. One aspect that can not be missed is that Peru is the main destination for Colombian investments abroad, so this partnership will improve the funding of Colombian companies in the Peruvian market.

The success of this integration may be able to think about the possibility of incorporating new exchanges of the countries of the region and thus advance the regional integration project of the markets which often tried to gain momentum, but for different reasons could not reach fruition. But, before you go projecting what can happen with this development in regional stock markets, it is clear that integration may not be as simple as it needs to reach agreements on various aspects such as policy issues. In fact, the attempt to integrate that have been carrying out in recent years, stock markets in Mexico and Brazil, could not materialize in this issue. What is clear is that if you could choose a time to think about that Latin American economies to advance the integration of stock markets despite the turmoil in the economies of first world, you could not pick a better time this region where overall, has achieved significant macroeconomic stability, which is growing strongly and has already begun thinking seriously about moving towards a permanent economic development.

(more...)