Colombia’s current account in the first half of the year registered a
deficit equivalent to 2.2% of the country’s gross domestic product of
the period, down from a deficit equivalent to 3.9% of GDP in the first
half of 2007, the central bank said Tuesday.
In absolute terms, Colombia’s current account deficit was US$2.39 billion
in the first half, compared with a deficit of US$3.38 billion in the same
period in 2007.
The current account deficit narrowed as
Colombia registered a trade surplus of US$1.56 billion in the first half
compared with a deficit of $826 million in the year-ago period.
Export revenue was boosted by commodity prices and by higher demand from Venezuela for manufactured goods.
The difference was partly offset by an increase of the money foreign
companies made in Colombia that was transferred to the companies’ home
countries.
Foreign companies repatriated US$5.23 billion in the first half, up from $3.81 billion in the same period in 2007.
On the other hand, the capital account posted a surplus of US$3.87
billion in the first half, down from US$7.41 billion in the same period a
year ago.
Foreign direct investment rose in the first half to US$5.24 billion from US$4.26 billion in the year-ago period.
Colombian Finance Minister Oscar Ivan Zuluaga said he expects the
current account deficit to end 2008 equivalent to 2.5%-3% of the GDP,
compared with a deficit equivalent to 3.4% of the country’s GDP in
2007. (Dow Jones)