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Fenalco warns that the political climate slows down business confidence, despite a slight recovery

Fenalco warns that the political climate slows down business confidence, despite a slight recovery

86% of merchants perceive deterioration in public order and fear an impact at the end of the year.

Colombian trade closed the third quarter with signs of recovery, although the union warned of tensions due to the political environment, regulatory uncertainty and the perception of insecurity in the country.

During the installation of Góndola 2025 in Cartagena, The president of Fenalco presented the results of the Economic Log, according to which 36% of merchants reported an increase in their sales during September, compared to the same month last year; 39% recorded similar levels and 25% a decrease.

“Although commercial activity shows signs of recovery after two difficult years, We cannot ignore that this rebound occurs despite the Government and not thanks to it. It is the businessmen, with their efforts, who keep the pulse of the economy in the face of an adverse environment,” said the union leader.

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The leader of Fenalco explained that the recovery of consumption It remains limited in categories such as alcoholic and non-alcoholic beverages, fuels and clothing, sectors that continue to lag behind. He added that many companies have resorted to promotions to move inventory and prepare for the end-of-year season.

However, he warned about factors that generate concern among merchants, such as the uncertainty regarding labor and health reforms, the fiscal situation and political tensions, including relations with the United States, which affect business decision-making.

He also warned about the increase in operating costs, derived from labor and tax burdens, as well as higher logistical expenses associated with the state of the roads, landslides and blockages.

According to the union, these factors could be passed on to the consumer with price increases towards the end of the year. In terms of security, the union highlighted that 52% of merchants consider “unsafe” to operate in the country today and 34% perceive it as “very unsafe.”

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In total, 86% believe that public order has deteriorated. According to the survey, 39% of businessmen foresee an improvement in the economy during the next six months, the 47% expect the situation to remain the same and 14% anticipate a worsening.

“Investment decisions are being held back by regulatory and political uncertainty,” concluded the president of Fenalco, by highlighting the need to reduce institutional tension to sustain the economic recovery observed in recent months.

Source: Integrated Information System

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