Colombia | Current account deficit continues to narrow in the second quarter

Summary

In the second quarter of 2024, the current account deficit stood at 1.6% of GDP, the lowest level since 2009. FDI fell to 2.75% of GDP, though it was sufficient to finance the deficit. The deficit is expected to close 2024 at around 3% of GDP.

Key points

• Key points:
• The trade deficit in goods grew by 16.3% year-on-year due to increased import activity (+4.2%) compared to exports (+2.6%).
• Foreign Direct Investment (FDI) contracted to 2.75% of GDP, with significant increases in sectors such as electricity, gas, and water (+281.8%), and declines in sectors like coal (-87.7%) and oil (-31.0%).
• The secondary income balance, mainly driven by remittances, showed a surplus of 3.74% of GDP, with an annual growth of 27.7%, reaching 3.868 billion dollars.

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