Balance of payments

During 1998, the Colombian balance of payments registered a current account deficit of US$5.3 billion (5.3% of GDP), which was financed by a surplus of US$4.5 billion (4.5% of GDP) in net capital inflows and by a reduction of international reserves of US$1.4 billion. Of the external capital flows, the resources of direct investment and long term indebtedness stand out. During 1999, the current account deficit shows a substantial decrease registering a significant adjustment to US$ 86 million in the third quarter, the lowest level of the last years. This adjustment is due to the imports reduction as a consequence of the deceleration economic activity. In the third quarter of 1999, the capital and financial account registered net inflows of US$339 million, which contrast with a net inflow of US$1.1 billion presented in the third quarter of 1998. At the end of the third quarter, international reserves stood at US$7.9 billion, a reduction of US$909 million in comparison with the end of 1998. For 1999, a US$1.2 billion (1.3% of GDP) deficit in the current account is expected which will be financed by US$750 million of international reserves and by US$330 million of capital inflows coming from foreign investment and from external public sector long term indebtedness.

BALANCE OF PAYMENTS 1/
(US$ millions)

p : Provisional.
pr : Preliminary.
pro : Projection.

1/  The statistics correspond to the new Balance of Payment measure, according with  the Balance of Payment Methodology of the International   Monetary Fund Balance of Payment Manual 5th Edition.
2/ Includes loans, commercial credit and financial lease and bonus.
3/ Includes loans and commercial credit.

Source: Banco de la República - Economic Studies Department.