"Petro Effect"? Report Warns of Deterioration Caused by His Decisions in the Housing Sector
The behavior of the housing sector in Colombia, which has been constant news these days, returns to the center of the debate due to a report presented in the Bogotá Council by councilwoman and former president of Camacol, Sandra Forero, which evidences the deterioration that the administration of the current president, Gustavo Petro, is causing to the construction sector, which, at the time, was also evidenced under his mandate as Mayor of Bogotá.
TL;DR
- Councilwoman Sandra Forero's report alleges President Gustavo Petro's policies are damaging Colombia's housing sector, labeling it the "Petro Effect."
- The report draws parallels between Petro's time as Bogotá's mayor (2012-2015) and his current presidency, noting a national decline in housing sector indicators.
- Initiated square meters in housing fell 30% in Bogotá during Petro's mayorship, while growing 9% nationally; currently, national figures are down 39% and Bogotá's up 20%.
- Housing launches dropped 16% in Bogotá under Petro's mayorship, with a 96% increase nationally; now, national launches are down 45% and Bogotá's down less than 12%.
- Construction employment grew 7% nationally during Petro's mayorship but fell 11% in Bogotá; currently, national growth is 2% and Bogotá's is 15%.
- Factors contributing to the alleged deterioration include the weakening of the "Mi Casa Ya" program, elimination of "Semillero de Propietarios," and increased mortgage credit costs.
- President Petro's prior statements, such as "Idiot is the one who buys a house today" due to high interest rates, and his suggestion to use the Army's engineering battalion for construction, have added to the controversy.
- The report's findings are significant as the construction sector impacts economic growth and employment, with nearly 50% of construction workers earning less than two minimum wages.