An executive of Colombia’s central bank believes that the recent boom in the mining and oil sectors could be fading, reported newspaper El Espectador on Thursday.
The mining and energy sectors declined 1.4% during the first quarter, and Central Bank director Carlos Gustavo Cano believes that such slow progress means that the sectors recent growth could be over.
According to Elespectador, the mining and energy sectors represent 70% of Colombia’s exports. Cano explains however, that between January and May 2013, exports fell 6% while external sales in energy and mining fell by 11%.
Eduardo Sarmiento, director of the Observatory of the Economic School of Engineers, told the newspaper he believes that outside influences are affecting the growth of the sector.
“The economy is in decline due to external factors such as the fall in prices,” said Sarmiento.
Cesar Diaz, Director of the Colombian chamber of mining however, defended the sector.
“The only thing that this sector has done is contribute to growth. To say that the dynamics of mining are hurting other areas would not be fair.”
According to Elespectador, Diaz did acknowledge however, that the external prices of minerals has had a negative effect on domestic mining.
“Companies continue to believe in the country and continue to invest in the mining sector. However, the situation was better a few years ago and we are concerned that the window of opportunity is closing,” added Diaz.
Sources
¿Un auge que pierde su brillo? (El Espectador)
