Colombia | Higher imports widen current account deficit

Summary

In 2025, the current account deficit would increase slightly due to a larger trade deficit driven by strong domestic demand, which lifts imports while exports grow only moderately. Remittances and a moderate primary-income deficit would partly offset it, and FDI would continue to finance it.

Key points

• Key points:
• In 2025 the current account deficit would rise slightly, led by a larger trade deficit linked to strong domestic demand that keeps imports elevated while exports expand at a moderate pace.
• Non-traditional exports would remain resilient, while tourism consolidates its role as the main engine of the services surplus. This performance would partly offset the deterioration in the trade balance. The primary-income deficit is expected to widen as profit and dividend remittances abroad normalize with stronger corporate activity; however, no material deterioration versus 2024 is anticipated.
• On the financial account, FDI would continue to be the principal source of external financing, with inflows concentrated in financial and business services and offsetting weaker investment in oil and mining.
• Remittances would continue to grow, albeit at a slower rate, remaining a stable and essential flow within current transfers and helping to smooth the external deficit.
• Overall, the 2025 balance of payments would reflect an economy with robust domestic demand, a current-account gap financed by stable FDI and remittances, and a more supportive external environment in terms of prices and financing conditions.

Geographies

Topics

Tags