Colombia reported real GDP growth of 7.0% in the third quarter of 2022, year-over-year, and showed the following balance of payments results.
Colombia’s current account recorded deficits from 2019 to 2021, with a deficit of $14.808 billion in 2019, $9.347 billion in 2020, $17.621 billion in 2021, and $10.199 billion as of June 2022.
In 2020, the trade balance recorded a deficit of $8.87 billion, a decrease of $993 million compared to 2019.
Mostly, this lower deficit was due to a decrease in imports of $9.340 billion, caused mostly by a decrease in imports of raw materials and intermediate products, which decreased by $4.326 billion, or 18.3%, compared to 2019, and a decrease in imports of capital goods and construction materials of $3.058 billion, or 18.5%, compared to 2019.
Balance of payments
In 2021, the trade balance recorded a deficit of $13.984 billion, an increase of $5.114 billion compared to 2020, mainly due to a $15.540 billion increase in imports caused mostly by an increase in imports of raw materials and intermediate products of $10.903 billion, or 56.4 percent.
In the second quarter of 2022, the trade balance recorded a deficit of $1.823 billion, a decrease of $1.725 billion compared to the same period in 2021.
This was mainly due to a US$6,946 million increase in exports, caused mainly by an increase in coal exports, which rose US$5,562 million, or 158%, compared to the same period in 2021.
In recent years, Colombia has recorded deficits in primary current account income because inflows from its foreign assets have not been sufficient to offset the interest payable on its foreign liabilities.
In the second quarter of 2022, Colombia recorded a deficit in primary current account income of US$4.723 billion.
However, the secondary income item recorded inflows of $2.843 billion in the second quarter of 2022.
At the same time, the deficit in the services category registered an improvement compared to the same period of 2021, mainly due to higher inflows of US$2,989 million.
Likewise, in the second quarter of 2022, Colombia recorded a deficit in the capital account of US$5.164 billion, 38.4% higher than the deficit in the same period of 2021.
Total foreign investment decreased by 45.5% compared to the second quarter of 2021, from US$7.128 billion to US$3.883 billion.
Net direct investment increased by US$2,240 million and net portfolio investment decreased by US$5,485 million compared to the same period in 2021.
In the first quarter of 2022, net acquisition of financial assets increased by US$510 million and net incurrence of liabilities increased by US$2.75 billion compared to the same period of 2021.