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    "<span style="margin:0px;padding:0px"><span
        style="margin:0px;padding:0px;color:rgb(136,136,136)">However,
        inflation is picking up, as citizens will have noticed. It hit
        8% in March — it’s highest level since October 2001. This is in
        part due to a shrinking food supply — caused, among other
        things, by one of the worst droughts — which has forced food
        prices up."</span></span>
    <div class="moz-forward-container"><br>
      <br>
      -------- Forwarded Message --------
      <table class="moz-email-headers-table" border="0" cellpadding="0"
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          <tr>
            <th valign="BASELINE" align="RIGHT" nowrap="nowrap">Subject:
            </th>
            <td>[ufpj-activist] Colombia’s economic outlook darkens:
              report - Leftist leader joins Santos government</td>
          </tr>
          <tr>
            <th valign="BASELINE" align="RIGHT" nowrap="nowrap">Date: </th>
            <td>Thu, 28 Apr 2016 06:53:34 -0500</td>
          </tr>
          <tr>
            <th valign="BASELINE" align="RIGHT" nowrap="nowrap">From: </th>
            <td>Cort Greene <a class="moz-txt-link-rfc2396E" href="mailto:cort.greene@gmail.com"><cort.greene@gmail.com></a></td>
          </tr>
          <tr>
            <th valign="BASELINE" align="RIGHT" nowrap="nowrap">To: </th>
            <td><a class="moz-txt-link-abbreviated" href="mailto:globalresistance@yahoogroups.com">globalresistance@yahoogroups.com</a>
              <a class="moz-txt-link-rfc2396E" href="mailto:globalresistance@yahoogroups.com"><globalresistance@yahoogroups.com></a></td>
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href="https://urldefense.proofpoint.com/v2/url?u=http-3A__colombiareports.com_leftist-2Dopposition-2Dleader-2Dresigns-2Daccepting-2Djob-2Dgovernment_&d=CwMFaQ&c=8hUWFZcy2Z-Za5rBPlktOQ&r=_iuwmBDMEAIAz6k1h--JVoji6x5mlDiImSbbdIp2zWg&m=VN23gEflrNYnNju86hPx_CEaapouFZ2pcq9Wh4XvT_Y&s=JrWhZGXEcOWsTgeAV3Z0HJFfGMOaMj8709dnd4HFZns&e="
                      target="_blank">http://colombiareports.com/leftist-opposition-leader-resigns-accepting-job-government/</a></span></font></div>
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                26px;padding:0px;text-align:center;vertical-align:top"><a
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href="https://urldefense.proofpoint.com/v2/url?u=http-3A__s3.amazonaws.com_colombiareports_wp-2Dcontent_uploads_2016_04_26120325_clara-5Flopez.jpg&d=CwMFaQ&c=8hUWFZcy2Z-Za5rBPlktOQ&r=_iuwmBDMEAIAz6k1h--JVoji6x5mlDiImSbbdIp2zWg&m=VN23gEflrNYnNju86hPx_CEaapouFZ2pcq9Wh4XvT_Y&s=GhohpFWsAd1OC8RhtHbtK0_jfYj6IijvIjjP4SNiQPI&e="
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src="http://s3.amazonaws.com/colombiareports/wp-content/uploads/2016/04/26120325/clara_lopez.jpg"
                    alt="Clara Lopez"
style="margin:0px;padding:0px;border:none;max-width:100%;vertical-align:top;min-height:auto"
                    width="1024" height="576"></a></div>
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                      title="View all posts in News" style="margin:0px
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                      target="_blank">NEWS</a></span></div>
                <h1
style="color:rgb(49,49,49);font-family:Arial,Helvetica,sans-serif;font-size:24px;margin:0px;padding:0px;letter-spacing:1px">Colombia’s
                  leftist opposition leader resigns after accepting job
                  in government</h1>
                <div
                  style="color:rgb(49,49,49);font-family:Georgia,serif;font-size:18px;margin:6px
                  0px 0px;padding:0px"><span style="margin:6px 0px
                    0px;padding:0px;color:rgb(136,136,136);font-style:italic"><span
                      style="margin:0px;padding:0px">written by <a
                        moz-do-not-send="true"
href="https://urldefense.proofpoint.com/v2/url?u=http-3A__colombiareports.com_author_thomasgraham_&d=CwMFaQ&c=8hUWFZcy2Z-Za5rBPlktOQ&r=_iuwmBDMEAIAz6k1h--JVoji6x5mlDiImSbbdIp2zWg&m=VN23gEflrNYnNju86hPx_CEaapouFZ2pcq9Wh4XvT_Y&s=VIhHXgpvZe_oXh1nogT17UTF6W7Dv9iPnRLPN81tnp0&e="
style="margin:0px;padding:0px;text-decoration:none;color:rgb(49,49,49);outline:none;text-transform:capitalize"
                        target="_blank">Thomas Graham</a></span></span> <span
style="margin:0px;padding:0px;color:rgb(136,136,136)">April 26, 2016</span></div>
                <div
                  style="color:rgb(49,49,49);font-family:Georgia,serif;font-size:18px;margin:6px
                  0px 0px;padding:0px"><span
                    style="margin:0px;padding:0px;color:rgb(136,136,136)"><br>
                  </span></div>
                <div style="margin:6px 0px 0px;padding:0px"><span
                    style="margin:0px;padding:0px">
                    <p
                      style="color:rgb(49,49,49);font-family:Georgia,serif;font-size:18px;margin:0px
                      0px 17px;padding:0px;line-height:32.4px">The
                      leader of Colombia’s leftist opposition resigned
                      after her party rejected her new job as Labor
                      Minister in the government she was supposed to
                      oppose.<span style="margin:0px;padding:0px"></span></p>
                    <p
                      style="color:rgb(49,49,49);font-family:Georgia,serif;font-size:18px;margin:0px
                      0px 17px;padding:0px;line-height:32.4px">The
                      board of the Democratic Pole (PDA) party voted
                      unanimously to accept the resignation of Clara
                      Lopez as their president, following her
                      appointment as the new Minister of Labor.</p>
                    <hr
                      style="color:rgb(49,49,49);font-family:Georgia,serif;font-size:18px;margin:0px
                      0px
17px;padding:0px;border-top-width:0px;border-right-width:0px;border-left-width:0px;min-height:0px;border-bottom-style:solid;border-bottom-color:rgb(222,222,222);clear:both;line-height:32.4px">
                    <p
                      style="color:rgb(49,49,49);font-family:Georgia,serif;font-size:18px;margin:0px
                      0px
17px;padding:0px;line-height:32.4px;letter-spacing:1px;text-align:center"><a
                        moz-do-not-send="true"
href="https://urldefense.proofpoint.com/v2/url?u=http-3A__colombiareports.com_santos-2Dincorporates-2Dleftist-2Dopposition-2Dcabinet-2Dleaving-2Duribe-2Deven-2Dmarginalized&d=CwMFaQ&c=8hUWFZcy2Z-Za5rBPlktOQ&r=_iuwmBDMEAIAz6k1h--JVoji6x5mlDiImSbbdIp2zWg&m=VN23gEflrNYnNju86hPx_CEaapouFZ2pcq9Wh4XvT_Y&s=NA_kZjzUbAdqtggJ8G-D_APO_MsELzOOt9cvuccYjvw&e="
style="margin:0px;padding:0px;text-decoration:none;color:rgb(220,57,18);outline:none"
                        target="_blank"><strong
                          style="margin:0px;padding:0px"><span
                            style="margin:0px;padding:0px;font-family:arial,helvetica,sans-serif">Santos
                            incorporates leftist opposition to cabinet,
                            leaving Uribe even more marginalized</span></strong></a></p>
                    <hr
                      style="color:rgb(49,49,49);font-family:Georgia,serif;font-size:18px;margin:0px
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17px;padding:0px;border-top-width:0px;border-right-width:0px;border-left-width:0px;min-height:0px;border-bottom-style:solid;border-bottom-color:rgb(222,222,222);clear:both;line-height:32.4px">
                    <div
                      style="color:rgb(49,49,49);font-family:Georgia,serif;font-size:18px;margin:0px
                      0px 10px
30px;padding:20px;line-height:32.4px;float:right;width:280px;background-color:rgb(238,238,238)">
                      <h3 style="margin:0px 0px
17px;padding:0px;font-size:20px;font-family:Arial,Helvetica,sans-serif;letter-spacing:0px;clear:both;line-height:1.3em">Profile</h3>
                      <h2 style="margin:0px 0px
17px;padding:0px;font-size:22px;font-family:Arial,Helvetica,sans-serif;letter-spacing:0px;clear:both;line-height:1.3em"><a
                          moz-do-not-send="true"
href="https://urldefense.proofpoint.com/v2/url?u=http-3A__colombiareports.com_clara-2Dlopez_&d=CwMFaQ&c=8hUWFZcy2Z-Za5rBPlktOQ&r=_iuwmBDMEAIAz6k1h--JVoji6x5mlDiImSbbdIp2zWg&m=VN23gEflrNYnNju86hPx_CEaapouFZ2pcq9Wh4XvT_Y&s=vrtrskRQHUVqYKoXyYivZT3UMMri8rGg53-4vu2Pqoc&e="
style="margin:0px;padding:0px;text-decoration:none;color:rgb(220,57,18);outline:none"
                          target="_blank">Clara Lopez</a></h2>
                    </div>
                    <p
                      style="color:rgb(49,49,49);font-family:Georgia,serif;font-size:18px;margin:0px
                      0px 17px;padding:0px;line-height:32.4px">The
                      appointment of Lopez was part of a broad cabinet
                      reshuffle by President Juan Manuel Santos. He
                      granted minister positions to both leading left
                      and conservative opposition politicians. This put
                      the parties in the peculiar position of opposing a
                      cabinet in which they are now represented.</p>
                    <p
                      style="color:rgb(49,49,49);font-family:Georgia,serif;font-size:18px;margin:0px
                      0px 17px;padding:0px;line-height:32.4px">Santos
                      also sought to diversify his cabinet by making
                      appointments outside the traditional Bogota
                      political elite.</p>
                    <p
                      style="color:rgb(49,49,49);font-family:Georgia,serif;font-size:18px;margin:0px
                      0px 17px;padding:0px;line-height:32.4px">In an
                      interview with Caracol Radio, Lopez said she is
                      very enthusiastic “about the challenge that Santos
                      has handed me in the final straight of the peaces
                      talks with FARC and in the opening of dialogues
                      with ELN.”</p>
                    <p
                      style="color:rgb(49,49,49);font-family:Georgia,serif;font-size:18px;margin:0px
                      0px 17px;padding:0px;line-height:32.4px"> </p>
                    <hr
                      style="color:rgb(49,49,49);font-family:Georgia,serif;font-size:18px;margin:0px
                      0px
17px;padding:0px;border-top-width:0px;border-right-width:0px;border-left-width:0px;min-height:0px;border-bottom-style:solid;border-bottom-color:rgb(222,222,222);clear:both;line-height:32.4px">
                    <p
                      style="color:rgb(49,49,49);font-family:Georgia,serif;font-size:18px;margin:0px
                      0px
                      17px;padding:0px;line-height:32.4px;text-align:center"><span
style="margin:0px;padding:0px;font-family:arial,helvetica,sans-serif"><strong
                          style="margin:0px;padding:0px"><a
                            moz-do-not-send="true"
href="https://urldefense.proofpoint.com/v2/url?u=http-3A__colombiareports.com_colombias-2Dpolitics-2Dagree-2Dequal-2Ddistribution-2Dpower-2Dslush-2Dfunds_&d=CwMFaQ&c=8hUWFZcy2Z-Za5rBPlktOQ&r=_iuwmBDMEAIAz6k1h--JVoji6x5mlDiImSbbdIp2zWg&m=VN23gEflrNYnNju86hPx_CEaapouFZ2pcq9Wh4XvT_Y&s=4n_h9CnxZIpy4UmoEblOdhhrQOixxKe4tkmU3fz86Ms&e="
style="margin:0px;padding:0px;text-decoration:none;color:rgb(220,57,18);outline:none"
                            target="_blank">Colombia’s political players
                            agree to more equal distribution of power
                            and slush funds</a></strong></span></p>
                    <hr
                      style="color:rgb(49,49,49);font-family:Georgia,serif;font-size:18px;margin:0px
                      0px
17px;padding:0px;border-top-width:0px;border-right-width:0px;border-left-width:0px;min-height:0px;border-bottom-style:solid;border-bottom-color:rgb(222,222,222);clear:both;line-height:32.4px">
                    <p
                      style="color:rgb(49,49,49);font-family:Georgia,serif;font-size:18px;margin:0px
                      0px 17px;padding:0px;line-height:32.4px">However,
                      voices within Polo were less enthusiastic. Senator
                      Jorge Robledo was clear that “Clara Lopez should
                      not accept the position. If she does she should
                      resign as president of Polo, so that it can
                      continue in opposition to Santos.”</p>
                    <p
                      style="color:rgb(49,49,49);font-family:Georgia,serif;font-size:18px;margin:0px
                      0px 17px;padding:0px;line-height:32.4px">Following
                      a party meeting, it was announced that Lopez would
                      resign.</p>
                    <p
                      style="color:rgb(49,49,49);font-family:Georgia,serif;font-size:18px;margin:0px
                      0px 17px;padding:0px;line-height:32.4px">“The
                      national executive committee of Polo Democratico
                      has accepted the resignation of President Clara
                      Lopez Obregon and announces that her decision to
                      take the position of minister will not compromise
                      the opposition of this leftist party to the
                      government.</p>
                    <p
                      style="color:rgb(49,49,49);font-family:Georgia,serif;font-size:18px;margin:0px
                      0px 17px;padding:0px;line-height:32.4px">Nonetheless,
                      the PDA indicated that it will continue supporting
                      the peace talks with FARC in Havana and the
                      opening of negotiations with ELN.</p>
                    <p
                      style="color:rgb(49,49,49);font-family:Georgia,serif;font-size:18px;margin:0px
                      0px 17px;padding:0px;line-height:32.4px">Those in
                      the Santos administration did welcome the
                      appointment.</p>
                    <p
                      style="color:rgb(49,49,49);font-family:Georgia,serif;font-size:18px;margin:0px
                      0px 17px;padding:0px;line-height:32.4px">The
                      Interior Minister, Juan Fernando Cristo, hailed
                      the new cabinet as more representative of the
                      country. “There are more women, there are more
                      parties, there are more regions and there are
                      indigenous people, and with this it demonstrates
                      the necessary diversity for territorial peace.”</p>
                    <p
style="color:rgb(49,49,49);font-family:Georgia,serif;font-size:18px;margin:0px;padding:0px;line-height:32.4px">The
                      President of the Senate, Luis Fernando Velasco,
                      also approved of the cabinet reshuffle. “I like
                      the ideological diversity that comes with the
                      inclusion of Clara Lopez as minister of labor.
                      This is an important indication of the need to
                      forge a different country once the peace treaty
                      has been signed.”</p>
                    <p
style="color:rgb(49,49,49);font-family:Georgia,serif;font-size:18px;margin:0px;padding:0px;line-height:32.4px">---------------------------</p>
                    <p style="margin:0px;padding:0px"><font
                        face="Georgia, serif" color="#313131"><span
                          style="font-size:18px;line-height:32.4px"><a
                            moz-do-not-send="true"
href="https://urldefense.proofpoint.com/v2/url?u=http-3A__colombiareports.com_colombias-2Deconomic-2Doutlook-2Ddarkens-2Dreport_&d=CwMFaQ&c=8hUWFZcy2Z-Za5rBPlktOQ&r=_iuwmBDMEAIAz6k1h--JVoji6x5mlDiImSbbdIp2zWg&m=VN23gEflrNYnNju86hPx_CEaapouFZ2pcq9Wh4XvT_Y&s=vTZu29AmcnbzxgAl89LxbBUd1E-ikoEdHt6tcW2HBu0&e="
                            target="_blank"><a class="moz-txt-link-freetext" href="http://colombiareports.com/colombias-economic-outlook-darkens-report/">http://colombiareports.com/colombias-economic-outlook-darkens-report/</a></a></span></font><br>
                    </p>
                    <p style="margin:0px;padding:0px"><font
                        face="Georgia, serif" color="#313131"><span
                          style="font-size:18px;line-height:32.4px"><br>
                        </span></font></p>
                    <h1
style="color:rgb(49,49,49);font-family:Arial,Helvetica,sans-serif;font-size:24px;margin:0px;padding:0px;letter-spacing:1px">Colombia’s
                      economic outlook darkens: report</h1>
                    <div
                      style="color:rgb(49,49,49);font-family:Georgia,serif;font-size:18px;margin:6px
                      0px 0px;padding:0px"><span style="margin:6px 0px
                        0px;padding:0px;color:rgb(136,136,136);font-style:italic"><span
                          style="margin:0px;padding:0px">written by <a
                            moz-do-not-send="true"
href="https://urldefense.proofpoint.com/v2/url?u=http-3A__colombiareports.com_author_thomasgraham_&d=CwMFaQ&c=8hUWFZcy2Z-Za5rBPlktOQ&r=_iuwmBDMEAIAz6k1h--JVoji6x5mlDiImSbbdIp2zWg&m=VN23gEflrNYnNju86hPx_CEaapouFZ2pcq9Wh4XvT_Y&s=VIhHXgpvZe_oXh1nogT17UTF6W7Dv9iPnRLPN81tnp0&e="
style="margin:0px;padding:0px;text-decoration:none;color:rgb(49,49,49);outline:none;text-transform:capitalize"
                            target="_blank">Thomas Graham</a></span></span> <span
style="margin:0px;padding:0px;color:rgb(136,136,136)">April 26, 2016</span></div>
                    <div
                      style="color:rgb(49,49,49);font-family:Georgia,serif;font-size:18px;margin:6px
                      0px 0px;padding:0px"><span
                        style="margin:0px;padding:0px;color:rgb(136,136,136)">
                        <p style="margin:0px 0px
                          17px;padding:0px;line-height:32.4px;color:rgb(49,49,49)">Colombia’s
                          economy is facing a bleak few years before
                          it’ll be able to crawl out of its economic
                          slump, according to a newly released report.<span
                            style="margin:0px;padding:0px"></span></p>
                        <p style="margin:0px 0px
                          17px;padding:0px;line-height:32.4px;color:rgb(49,49,49)">The
                          LatinFocus Consensus Forecast collated
                          research from central banks and independent
                          panelists to gauge the continent’s economic
                          outlook. Their conclusions do not bode well
                          for Colombia — at least in the short-term.</p>
                        <p style="margin:0px 0px
                          17px;padding:0px;line-height:32.4px;color:rgb(49,49,49)">The
                          good news was few and far between. In
                          February, industrial production was bolstered
                          by the newly-upgraded Cartagena refinery and
                          its index growth reached an almost two year
                          high. Unemployment was also down by two
                          percentage points.</p>
                        <p style="margin:0px 0px
                          17px;padding:0px;line-height:32.4px;color:rgb(49,49,49)">However,
                          inflation is picking up, as citizens will have
                          noticed. It hit 8% in March — it’s highest
                          level since October 2001. This is in part due
                          to a shrinking food supply — caused, among
                          other things, by one of the worst droughts —
                          which has forced food prices up.</p>
                        <p style="margin:0px 0px
                          17px;padding:0px;line-height:32.4px;color:rgb(49,49,49)">Moreover,
                          consumer confidence has dropped sharply since
                          the turn of the year, likely due to inflation
                          and pessimism about the country’s economic
                          conditions. Simply put, people are being
                          cautious and not willing to purchase major
                          items.</p>
                        <p style="margin:0px 0px
                          17px;padding:0px;line-height:32.4px;color:rgb(49,49,49)">According
                          to the report, the central bank’s efforts to
                          reduce inflation and the expanding current
                          account deficit will impede growth in 2016.</p>
                        <p style="margin:0px 0px
                          17px;padding:0px;line-height:32.4px;color:rgb(49,49,49)">It
                          has increased the reference interest rate to
                          6.5% in an attempt to curb inflation. The
                          logic here is that by increasing interest
                          rates, consumers will have less money to
                          spend. And with less money to spend, the
                          economy slows and inflation decreases, coming
                          back under control.</p>
                        <p style="margin:0px 0px
                          17px;padding:0px;line-height:32.4px;color:rgb(49,49,49)">However,
                          although interest rates are a major driver of
                          inflation, there are other factors involved.
                          So success is far from guaranteed. Panelists
                          estimate 2016 will close with inflation at
                          5.8%, and expect this to drop to 3.7% for
                          2017.</p>
                        <p style="margin:0px 0px
                          17px;padding:0px;line-height:32.4px;color:rgb(49,49,49)">Once
                          inflation is under control, the central bank
                          can take measures to accelerate growth once
                          more.</p>
                        <p style="margin:0px 0px
                          17px;padding:0px;line-height:32.4px;color:rgb(49,49,49)">However,
                          many events in 2016 will be beyond their
                          control. This is introducing a lot of
                          uncertainty that is reducing confidence in
                          Colombian markets.</p>
                        <p style="margin:0px 0px
                          17px;padding:0px;line-height:32.4px;color:rgb(49,49,49)">For
                          one, the national security situation is
                          unclear. Although peace treaties with FARC and
                          perhaps ELN are seemingly in the horizon, the
                          first deadline for the deal was missed and the
                          result is far from certain.</p>
                        <p style="margin:0px 0px
                          17px;padding:0px;line-height:32.4px;color:rgb(49,49,49)">Similarly,
                          the effect of El Niño cannot be predicted with
                          any surety. Many expect this year’s El Niño to
                          be one of the strongest in six decades. It may
                          result in a severe and persistent drought
                          across Colombia, affecting crop yields and
                          causing forest fires.</p>
                        <p style="margin:0px 0px
                          17px;padding:0px;line-height:32.4px;color:rgb(49,49,49)">Clearly
                          this will affect the price of basic
                          consumables, and thus inflation. Attempts to
                          limit the damage of forest fires are also
                          costly blow for a government that is already
                          running a deficit.</p>
                        <p style="margin:0px 0px
                          17px;padding:0px;line-height:32.4px;color:rgb(49,49,49)">However,
                          the biggest driver of Colombia’s recent
                          economic struggles has been the crash in oil
                          prices. Colombia is the third largest
                          oil-producing country in Latin America and oil
                          makes up roughly 50% of its exports.</p>
                        <p style="margin:0px 0px
                          17px;padding:0px;line-height:32.4px;color:rgb(49,49,49)">So
                          it is unsurprising the crash in price of a
                          barrel of oil has rattled it.</p>
                        <p style="margin:0px 0px
                          17px;padding:0px;line-height:32.4px;color:rgb(49,49,49)">The
                          crash is a simple matter of supply and demand.
                          Many economies are in recession and some are
                          becoming less reliant on oil. Both of these
                          factors are reducing demand. Yet supply has
                          rocketed due to an oil glut, meaning that the
                          price of a barrel has plummeted. This has
                          reduced the value of Colombia’s exports.</p>
                        <p style="margin:0px 0px
                          17px;padding:0px;line-height:32.4px;color:rgb(49,49,49)">The
                          Colombian peso is therefore strongly linked to
                          energy prices. Until oil-producing countries
                          agree a deal to freeze oil production to
                          increase energy prices down the line, the
                          Colombian peso will continue to be volatile.</p>
                        <p style="margin:0px 0px
                          17px;padding:0px;line-height:32.4px;color:rgb(49,49,49)">Unfortunately,
                          the last round of talks between oil-producing
                          countries on April 17th failed to produce an
                          agreement.</p>
                        <p style="margin:0px 0px
                          17px;padding:0px;line-height:32.4px;color:rgb(49,49,49)">With
                          domestic uncertainty and a weak, unstable
                          international economy, 2016 looks like it will
                          be a trying year for Colombia. However, the
                          report’s panelists agreed that promising
                          growth would return beyond 2017.</p>
                        <p
                          style="margin:0px;padding:0px;line-height:32.4px;color:rgb(49,49,49)">But,
                          realistically, trying to predict the economy
                          that far into the future is a fool’s game.</p>
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