Colombia’s Current Account Deficit Continues to Widen

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CEIC Macro Watch Global #47 - September 2, 2015 Colombia’s current account deficit-to-GDP ratio rose sharply to 5.2% in 2014, its highest since 2000, from 3.3% in the previous year. The country’s large current account gap was mainly propelled by its highest quarterly deficit to date of USD6.3 billion during the last quarter of 2014 (Q4 2014). That was almost double the USD3.2 billion recorded in the same quarter of the previous year. The larger current account deficit can be attributed to the weaker flow of merchandise (goods) export earnings due to the drop in oil prices and mining exports. The merchandise trade balance was in deficit in all quarters since Q1 2014, and rose steeply to USD3.4 billion in Q4 2014, in sharp contrast to the surplus of USD723.4 million in Q4 2013. Nevertheless, real GDP has decelerated to 2.8% year-on-year (YoY) in Q1 2015 from 6.5% YoY in Q1 2014. The weaker economic growth may help dampen the demand for imported goods, thus correcting the adverse current account trend. By Emmanuel Penetrante in Philippines - CEIC Analyst Discuss this post and many other topics in our LinkedIn Group (you must be a LinkedIn member to participate). Request a Free Trial Subscription. Back to Blog

2nd September 2015 Colombia’s Current Account Deficit Continues to Widen

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