Colombia's current account deficit fell to $9.7 billion in 2023

According to the central bank's figures, the current account deficit in 2022 was equivalent to 6.2% of Colombia's GDP that year. The fall in the deficit was due to lower profits from companies with foreign investment in the country, as well as a lower deficit in the country's trade balance, amid a slowdown of Latin America's fourth-largest economy last year. The central bank's technical team forecasts the current account deficit will measure 2.4% of GDP this year.

Colombia's current account deficit fell to $9.7 billion by the end of last year, the central bank said on Friday, versus a deficit of $21.4 billion at the end of 2022.

The deficit in Colombia's current account - which records the real flow of finances between Latin America's fourth-largest economy and those of the rest of the world - was equivalent to 2.7% of gross domestic product. According to the central bank's figures, the current account deficit in 2022 was equivalent to 6.2% of Colombia's GDP that year.

The fall in the deficit was due to lower profits from companies with foreign investment in the country, as well as a lower deficit in the country's trade balance, amid a slowdown of Latin America's fourth-largest economy last year. Meanwhile, foreign direct investment that arrived in the country in 2023 rose 1.53% to $17.4 billion dollars, compared to 2022.

Meanwhile, injections of foreign capital in investment portfolios contracted 61.2% to $1.12 billion, while remittances from Colombians working abroad increased by 7% to $10.1 billion in 2023. The central bank's technical team forecasts the current account deficit will measure 2.4% of GDP this year.