Colombia | In the third quarter, the current account deficit stood at 1.7% of GDP

Summary

In the third quarter, the current account deficit continued to close rapidly at 1.7% of GDP and continued to reflect the slowdown in the economy's domestic demand.

Key points

• Key points:
• The current account deficit reached USD 1,680 million in the third quarter and represented 1.7% of GDP, decreasing by 73% compared to the value recorded in the third quarter of 2022 (USD 6,227 million) and by 65.2% compared to the second quarter of 2021.
• The deficit reduction was led by the adjustment in the trade balance, which decreased by 67.1% with respect to the same quarter in 2022 (from USD 4,473 million to USD 1,471 million) and went from representing 5.1% of GDP to 1.5%.
• The deficit in primary income, where the balance of factor income is collected, reached USD 3,566 million, decreasing by 26.6% with respect to the third quarter of 2022 and went from representing 5.6% of GDP in the third quarter of 2022 to 3.6% of GDP in the third quarter of 2023.
• Secondary income represented 3.4% of GDP, mainly explained by remittances, which grew 4.9% annually and represented 2.5% of GDP.
• Foreign direct investment reached USD 3,368 million, growing by 8.9% compared to the third quarter of 2022. With this, FDI represented 3.4% of GDP and financed more than the entire current account deficit.

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