Supply chain diversification and Colombia’s low-debt path to growth

By Blu Putnam, Chief Economist & Erik Norland, Senior Economist, CME Group

Global Diversification of Supply Chains

• Globalization faces headwinds from pandemic, trade war.
• Global diversification of supply chains is taking hold.
• Will restructuring of supply chains lead to higher costs?
• Supply chains will evolve dynamically, but will take time.

Colombia: Can Low Debt and Rates Spur Growth?

• Colombia’s low debt and interest rates could help spur growth.
• Colombia’s peso has held up well despite poor commodity prices.
• Central bank can potentially cut rates by 100 basis points over time.
• Colombia’s yield curve has steepened in a positive sign for growth.