Colombia recorded a current account deficit of $2.853 million in the third quarter of 2025, equivalent to 2.4% of GDP. This figure exceeded the previous quarter but fell short of market expectations. The rise was mainly due to a deterioration in the goods trade balance, though remittances helped mitigate it.
In the third quarter of 2025, Colombia's current account deficit reached $2.853 million, representing 2.4% of gross domestic product (GDP). This marks an increase from the previous quarter, when the imbalance was $1.604 million. Although the figure was lower than market projections of around $3.000 million, it highlights pressures on the country's external economy.
The main driver of the widened deficit was the deterioration in the goods trade balance. However, remittance inflows showed solid performance and helped contain part of this setback. According to an Itaú analysis, excluding remittances, the deficit would have climbed to 7.7% of GDP, a much higher level.
Regarding financing, foreign direct investment (FDI) inflows have continued to cover the external imbalance, mitigating immediate risks to macroeconomic stability. Nevertheless, Itaú forecasts a less favorable outlook by the end of 2025, with the deficit potentially widening to 2.8% of GDP. This would be driven by higher internal demand and ongoing fragility in the trade balance. Still, the bank estimates that solid transfer flows will continue to cushion some of the deterioration.
The global context includes a drop in eurozone inflation in November, with a 0.3% monthly decline. In Colombia, discussions on tax reform continue in Congress, and negotiation tables for the minimum wage have been set up.