US economy adds 275,000 jobs in February as unemployment rate jumps. The economy added 275,000 jobs in February, while the unemployment rate rose to 3.9% from 3.7%, the government said Friday. (Axios)

European Central Bank hints at June rate cut as it trims inflation forecast. The European Central Bank on Thursday lowered its annual inflation forecast, as its confirmed a widely expected hold of interest rates. (CNBC)

China’s leaders pledged to upgrade the economy. Why are investors so skeptical? Chinese leaders have pledged to achieve an ambitious growth rate this year, while reshaping its economic model to focus on technology innovation. (CNN Business)

Exclusive: US regulators expected to significantly reduce Basel capital burden. U.S. regulators are expected to significantly reduce the extra capital banks must hold under a proposed rule that has drawn aggressive pushback from Wall Street, said eight industry executives in regular contact with the agencies and regulatory officials. (Reuters)

China's CNOOC makes 100-million-ton oilfield discovery in South China Sea. Chinese state-owned oil and gas giant CNOOC Ltd (0883.HK), opens new tab has discovered a new reserve in the South China Sea containing over 100 million tons of oil equivalent proved in-place, the company said in a statement on Friday. (Reuters)

Egypt hikes interest rates by 600 basis points, pound crumbles to record low. Egypt’s pound hit a record low against the dollar on Wednesday after its central bank hiked interest rates by 600 points and devalued the currency. (CNBC)

North Korea’s COVID curbs still strangling economy, report says. Cross-border movement of people and trade have practically evaporated since the pandemic, Human Rights Watch says. (Al Jazeera)

Global trade struggles to bounce back from 2023 slump, WTO says. Global merchandise trade is struggling to accelerate from a slump last year amid signs that growth in the automotive industry is softening, the World Trade Organization said. (Bloomberg)

Supply chain, manufacturing and procurement ‘a very big focus’ for cost-cutting CFOs. Executives’ 2024 priorities make sense given geopolitical tensions and the rising costs of raw materials and other inputs, said Boston Consulting Group’s Paul Goydan. (Supply Chain Dive)

Shippers should lock in trucking rates soon: experts. Carrier executives are beginning to show optimism for a rate recovery, which could spell rising costs for customers. (Supply Chain Dive)

Rise in project abandonments signals continued industry turmoil. The uptick in on-hold or discontinued work could mean challenges ahead for construction, said an economist at ConstructConnect. (Construction Dive)

The SEC and the rise of the climate risk industry. The Securities and Exchange Commission's adoption of climate risk disclosure rules comes as an ecosystem of risk analysis has begun to coalesce across the business and climate sectors. (Axios)

 

Colombia's economy rebounds amid tight policies

Kendall Payton, editorial associate

Tight macroeconomic policies in Colombia within the last two years are likely the cause of a reduction in domestic and external imbalances seen mainly in 2021-22. The Colombian economy is expected to grow 1.8% as inflation slows 5% this year, and the central bank plans to cut its interest rate to nearly 8%, according to Finance Minister Ricardo Bonilla.

Real GDP is expected to expand by 1.3% this year as macroeconomic policies gradually normalize, according to the Colombia Reports. "Gradually we are emerging from this global slowdown," Bonilla said during an interview in capital Bogota. “Any proposed changes would be sent to Congress for approval … we're going to start a process of socialization with economic players, business associations, etcetera.”

Colombia’s Labor Ministry also raised the country’s minimum wage by 12% to $335 (COP1.3 million). These wage hikes affect the monthly income of 2.5 million workers which is more than three percentage points higher than last year’s estimated inflation rate. Producer prices in Colombia dropped by 5.38% year-over-year in February 2024, revealing the tenth month of producer price deflation, reflecting progress from the central bank's aggressive interest rate hikes, per Trading Economics.

Yes but: The risk to the global economy has moderated, but geopolitical tensions worldwide can tighten global financial conditions further. Disrupted supply chains and global food prices may have a significant impact on Colombia’s economic growth and add to inflationary pressures. Inflation rates have fallen but not yet reached the central bank’s 3% target. Some economists have adjusted the policy rate to aim for the 3% target to hit by mid-2025.

In the banking sector, nonperforming loans (NPLs) continue to rise in the economic slowdown—but banks remain steady showing their assets remain liquid and well-capitalized. However, financial risks should still be carefully watched.

By the numbers: Customers in Colombia have averaged 28 days beyond terms, with 46% of credit professionals saying payment delays have remained the same, per the FCIB Credit and Collections Survey. The most common causes for payment delays are cash flow issues (75%), inability to pay (38%), billing disputes (38%) and unwillingness to pay (25%).

What FCIB Credit and Collections Survey respondents are saying:

• “Ask lots of questions. Do more in-depth research on the prospective company.”
• “Have a timely follow-up and attention to details in documentation.”
• “It is important to know customer's payment process to avoid misunderstandings or delays due to administrative issues.”
• “Ensure payment language is on the wire payments received.”

The  FCIB Credit and Collections Survey  is now open. It covers Indonesia, Israel, Germany and Pakistan. You will earn ICEU/participation credit for your input. Be sure to share the link with your credit and collections network.  

Week in Review Editorial Team:

Annacaroline Caruso, editor in chief

Jamilex Gotay, editorial associate

Kendall Payton, editorial associate