The invasion of Russia to Ukraine puts ever greater stress on the world economy. The economic powers began to react after the Russian offensive.
(Read: Oil and coal, with eyes on Ukraine).
Now, these tensions have been projected onto world markets. This has been demonstrated by the price of oil, which this Thursday exceeded the 100 dollars per barrel. Also, the Russian stock market and other markets, which register sharp falls after the Russian invasion of Ukraine.
The situation will not be unknown in Colombia, according to the expert Jeisson Balaguera, who explains that with this type of global tension, the markets tend to panic. In consecuense, commodities, such as gold and oiltend to rise in price and stocks tend to fall.
In the Colombian case, Balaguera, executive director for Values AAA and professor at the EAN University, assures that it could have an impact on the Stock Market, since changes in oil would have an effect on the dynamics of Ecopetrol, the largest company in the Colombian market.
(What’s more: Biden imposes sanctions on Russia after ‘beginning of invasion of Ukraine’).
“Oil may go up but it doesn’t mean your stocks will go up“, assures the expert.
However, currencies will also receive the effects of the crisis. However, it all depends on the reference currency. While one currency is appreciating, another may be devaluing.
In business terms, Balaguera assures that the most affected sectors will be technological and financialtaking into account what has happened in previous crises.
Along with this, investments will focus on tangible assets. Their volume is not reduced, but they are moved to other types of sectors that do not represent as much uncertainty for investors.
Finally, the expert explains that Colombia has already begun to see the effects of these tensions. For example, through inflation which registered all-time highs by positioning itself at 5.62% for 2021.
(Keep reading: Conflict between Russia and Ukraine from A to Z).
Balaguer states: “A part of the inflation in the country is the product of the increase in the price of commodities and raw materials worldwide.”
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