BOGOTA - Colombian President Gustavo Petro's track record of unpredictable policy lurches has contributed to a sharp drop in investment that is expected to continue this year, as some business owners complain strategic planning has become almost impossible.
"Every day there are announcements, which has an effect," said Mario Hernandez, who owns businesses in the construction, retail and agriculture sectors, including an eponymous fashion brand, that employ about 1,000 people in Colombia and a similar figure abroad. In February, Petro's government announced it would change financing for infrastructure, leaving big projects like Bogota's long-awaited metro short around $200 million in funding.
"The feeling is very negative," said Felipe Klein, economist for Latin America for BNP Paribas, after meeting in Bogota with businesses and bankers. Earlier this month commerce minister German Umana dismissed fears and underlined improved foreign direct investment last year, which he expects to rise up to 4% this year.