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Despite challenges, including depressed international energy prices, as well as rising debt and fiscal imbalances, the recession in Trinidad and Tobago is likely to bottom out in 2017. The IMF forecasts the economy will grow by 0.3% in 2017 and 3.4% in 2018. The recovery is expected to come via a small rise in energy prices, the inauguration of the Juniper gas field in 2017 and an expected rise in public sector construction activity, particularly in the affordable housing sector. Achieving that modest growth rate would depend on the government being proactive in pushing forward with public works and house building. This chapter contains interviews with Paula Gopee-Scoon, Minister of Trade and Industry; Augusto Arosemena Moreno, Minister of Commerce and Industry of the Republic of Panama; and Terrence Farrell, Chairman, Economic Development Advisory Board. It also contains a viewpoint from Marla Dukharan, Group Economist, Royal Bank of Canada (Caribbean).

Industry is set to remain an important part of Colombia’s economy, not only for its capacity to create employment, but also for its significant impact on regional development. However, manufacturers face a challenging domestic environment due to fiscal reforms, which are likely to reduce consumer expenditure in 2017. Still, the devaluation of the peso has made the country’s exports more attractive abroad – an opportunity that local manufacturers are looking to capitalise on to solidify their position in foreign markets. Given the number of FTAs the country has signed, Colombian industrialists also face greater competition, the impact of which will vary between segments. Improving competitiveness and productivity is crucial for industrial activities to compete internationally. As for retail, a plethora of new shopping malls bode well for the expansion of sales. However, much will depend on disposable income, with tax hikes set to affect consumer confidence. With the country’s GDP forecast to expand, the sector is likely to continue its rapid growth. This chapter contains an interview with Daniella Souza, President, Dow Chemical, Andean Region.

With plans set to modernise transport networks and government-led housing programmes expanding the availability of homes, Colombia’s construction sector remains an essential part of the economy. The government estimated that the construction sector will grow by 3.9% in 2017, largely driven by the execution of large-scale projects, which is set to accelerate growth of the infrastructure segment from 2.4% in 2016 to as much as 8% by 2017, as the various 4G projects take shape. Residential, commercial and office projects, as well as large-scale infrastructure development, will continue to drive the sector in coming years. The focus on pre construction sales by the real estate market has allowed the sector to avoid significant risk, while expanding to support the housing needs of the population. This has galvanised social housing programmes and property acquisition by middle-income Colombians. Although real estate remains profitable due to genuine demand, companies will have to manage a number of variables that remain out of their control, such as construction licences and access to water and electricity connections. This chapter features an interview with Alfredo Rizo, CEO, Terranum Corporate.

Developments in Colombia’s capital markets in recent years reflect those in the wider economy. The well-established sovereign fixed-income market has seen increased issuance as the government seeks to finance its widening budget deficit while rolling over its existing stock of debt. Increased global economic uncertainty, with bouts of extreme market volatility that particularly impact emerging markets, would suggest that the immediate future for the development of the Colombian derivatives market is bright. While traded volumes are likely to continue to ebb and flow, the overarching trend is likely to continue upwards as the country’s capital markets become increasingly sophisticated and a wider range of derivative products are available. This chapter includes an interview with Juan Pablo Córdoba, President, Colombian Stock Exchange.

This chapter provides an overview of Colombia’s legal framework, covering a range of topics from the employment regime and traditional corporations to merger regulation and arbitration. In addition, it features a viewpoint by Jaime E Trujillo Caicedo, Partner and Chair of Latin America Mergers and Acquisitions Practice Group, Baker McKenzie Colombia.