Colombia’s external debt continues to balloon at a pace far more rapid than the country’s GDP growth, according to the central bank.
Colombia’s external debt grew by 10% during 2014, hitting more than $100 billion for the first time ever, and doubling the GDP growth rate during the same period.
The South American nation’s Central Bank have released a report outlining Colombia’s external debt figures up to October 2014.
Viewed another way, total external debt is now equivalent to 25.81% of Colombia’s GDP, a level not seen in 10 years.
Colombia’s external debt
This figure takes into consideration the IMF’s 2014 GDP estimation of $388 billion for Colombia against the Central Bank’s newly released external debt figures.
A nation’s debt to GDP ratio is important as it compares a nation’s production to the amount that it owes, meaning that a country with a higher debt to GDP ratio will generally require more time to pay back foreign loans.
Colombia’s total external debt contains approximately 60% in public debt and 40% in private debt.
Public debt increased approximately 15% during 2014 and private debt went up just 4% when compared to the previous year.
The World Bank defines total external debt as the “debt owed to nonresidents repayable in currency, goods, or services.”
- Deuda external de Colombia (Banco de la Republica)