Daniel E. Velandia O., head of research and chief economist at Credicorp Capital in Bogotá: “The economy’s significant slowdown can be explained, to a large extent, by the elevated level of interest rates. The domestic cost of financing remains near the highest level of the last 25 years, which has contributed to a significant adjustment of both private consumption and investment, after their solid dynamism in 2021 and 2022. In fact, the deceleration of households’ spending was widely expected following two years of unsustainable pace. That said, the investment nosedive (a 25 percent drop last year) has also been the response to heightened regulatory uncertainty as President Gustavo Petro’s administration has proposed to carry out important changes to the rules of the game in strategic sectors of the economy, including oil and gas, electricity, health care, housing and infrastructure. Although radical changes have not been implemented due to…”