Following the increase in the minimum wage for 2025 announced by President Gustavo Petro, of 9.54%, several leaders and spokespersons from various sectors of the country, especially the Colombian business community, have spoken out.
Reactions that Petro has answered almost one by one, from his official X account. In fact, the president stated in a trill that “The board of directors of the Bank of the Republic, despite two months of negative inflation rate, decided not to lower the real interest rate. Thus, Banrepública sought to stagnate the economy by making investment more expensive.“.
Likewise, the president maintained that based on an increase in demand, it seeks to reactivate the economy. “The instrument to increase demand, given the decrease in public demand due to the collapse of the financing law in the economic commissions, is a substantial increase in the minimum wage“he indicated.
Carolina says things the other way around. The board of directors of the Bank of the Republic, despite two months of negative inflation rate, decided not to lower the real interest rate. Thus, the Banrepública sought to stagnate the economy by making investment more expensive.
I am looking for an increase… https://t.co/bg5LODDIQB
— Gustavo Petro (@petrogustavo) December 25, 2024
This, in response to a tweet from Carolina Soto, Senior Associate of Dattis by Llyc, who stated that “With the increase in the minimum wage of 9.54% (4.4% real) and the disproportionate increase in transportation assistance (18% real), we can expect a 2025 with higher inflation, high interest rates for longer and a deterioration in the labor market“.
It is worth noting that the increase in Minimum salary for next year will be 123,500 in pesos. That is, the salary goes from 1,300,000 pesos to 1,423,500 pesos, and With transportation assistance it is 1,623,500 pesos. This means that the transportation aid also increased and remained at 200,000 pesos.
(See more: The services that will increase next year with the adjustment of the minimum wage)
Likewise, the president indicated: “To the experts, former ministers of Duque and heads of unions, I remind you of what the Nobel Prize winner in economics David Card said about the minimum wage“. In the trill, Petro shared an interview that the Spanish newspaper El País did with him, regarding the award Nobel Prize in Economicswho stated that “The increase in the minimum wage does not create or destroy value, it only redistributes it”.
VALENTINA DELGADILLO ABELLO
Journalist Portfolio
