Colombia | In 2022, the current account deficit stood at 6.2% of GDP.

Summary

Current account deficit for 2022 reached $21.446 billion and represented 6.2% of GDP, significantly above historical averages.

Key points

• Key points:
• The high deficit was mainly explained by the high deficit in the trade balance and primary income.
• Exports, both traditional and non-traditional, grew strongly due to the external context of good growth of our trading partners and a high exchange rate, which improved the terms of trade.
• High dollar outflows due to dividend remittances and other investment positions accentuated the deficit in primary income The current account deficit was 80% financed by foreign direct investment.
• The mining and energy sector was the leader in capital inflows, representing 32.6% of investment.
• A reduction in the trade and current account deficit is expected for 2023, due to a slowdown in import demand.

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