The growth of the Cali economy during the first quarter of 2024, well above the national average, is encouraging news. However, it is necessary to return to the levels prior to 2023 to guarantee a lasting recovery, and to promote sectors such as housing and exports so that there is a greater impact on the generation of jobs and is directly reflected in better quality. of life for those who live in the capital of the Valley.
According to the results of the Monthly Economic Activity Indicator, IMAE, which measures eleven variables including the real production index, the execution of public spending, savings deposits, construction licenses or vehicle license plates, among others, During the months of January, February and March of this year the local economy showed a rebound of 2.6%. A difference of 1.9% with that reported nationally, which barely reached 0.7%.
Compared to the same period in 2023, two items marked this growth: on the one hand, the execution of public spending, which increased by 19%, and on the other, the cargo toll, which increased by 18%. On the contrary, items such as construction licenses, which fell 23.4%, and exports, with a decrease of 26.6%, continue to decrease.
Those most affected by the recession that began to be felt in the previous year are precisely two of the sectors that can contribute the most to the supply of jobs, hence its impact is reflected in the local unemployment figure, which in April marked 12%.
Although the growth figure for the Cali economy is well below its historical average of 3.8%, there is hope that it will increase in the remainder of the year. Firstly, there is greater confidence in the current municipal administration as well as in its management of public affairs, which can attract more investment to the city. Furthermore, the holding of COP16, the world biodiversity summit that will bring together 12,000 participants in the capital of the Valley, will bring important economic returns.
The positive moment is also reflected in the inflation figures in Cali, lower than the rest of the country average, which means relief for citizens’ pockets. If there is greater purchasing power, the reactivation can be more agile and effective. For this to be the case, we must insist that the Bank of the Republic reduce interest rates, which can encourage consumption and contribute to better performance of the economy.
Although Valle del Cauca showed lower growth than Cali in the first quarter of the year, with 1.3%, it is worth noting that it was also 0.6% above that of the Nation. The recovery will be slower, most of the departmental IMAE indicators are still in the red but have recovered compared to those in 2023.
Although this will continue to be a difficult year for the local and regional economies, there are good expectations for their improvement. To achieve this, we must work even harder on trust so that new investors arrive and insist on the unique potential of the region due to its geographical location, its infrastructure and its human capital.
