Report on the Evolution of the Balance of Payments and the International Investment Position – Fourth Quarter of 2025

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Balance of payments statistics
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Office for Monetary Policy and Economic Information Technical and Economic Information Department Sección de Sector Externo

The quarterly report on the performance of Colombia’s balance of payments and the international investment position outlines the main results for the country’s current and financial accounts, as well as the evolution of their items.

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1. Overall Results for the Balance of Payments

During the fourth quarter of 2025, Colombia's current account of the balance of payments registered a USD 3,912 million (m) deficit, equivalent to 3.1% of the quarterly Gross Domestic Product (GDP). In turn, the financial account, including the variation in foreign reserves (USD 543 m), recorded net capital inflows for USD 3,471 m (2.7% of quarterly GDP). Errors and omissions were estimated at USD 441 m.

By components, the current account deficit (USD 3,912 m) in the fourth quarter of 2025 was driven by the deficit in the trade balance of goods amounting to USD 4,457 m, and net primary income outflows of USD 3,680 m. These results were partially offset by net income from current transfers of USD 4,224 m (Graph 1).

Graph 1. Components of Colombia’s Current Account of the Balance of Payments

Figures in millions of U.S. dollars
Line and bar graph with quarterly data from 2019 to 2025; figures in millions of U.S. dollars. The graph shows four series: Trade balance of goods and services (orange bars), with negative values for most of the period, particularly from 2020 to 2022, reaching deficits close to USD -6,000 million. Factor income (gray bars), also negative throughout the entire period, fluctuating between approximately USD -1,000 million and USD -4,000 million. Current transfers (blue bars), consistently positive and increasing, rising from around USD 1,500 million in 2019 to more than USD 4,000 million in 2025. Current account (black line), which combines these components and remains negative throughout the period. It shows a deeper deficit in 2022, close to USD -7,000 million, followed by a partial recovery in 2023 and a decline again in 2025.
Figures as a percentage of GDP
Line and bar graph with quarterly data from 2019 to 2025; figures as a percentage of GDP. The graph shows four series: Trade balance of goods and services (orange bars), with negative values throughout the entire period, ranging from approximately −1.0% to −6.0% of GDP. Factor income (gray bars), also persistently negative, fluctuates between approximately −1.0% and −4.0% of GDP. Current transfers (blue bars), consistently positive and stable, standing between 2.0% and 4.0% of GDP, with a slight upward trend toward 2025. Current account (black line), which remains in deficit throughout all years. It shows deeper declines between 2021 and 2022, close to −6.0% of GDP, and a moderate recovery between 2023 and 2024 before deteriorating again toward 2025.

Source: Banco de la República (The Central Bank of Colombia)

In the financial account for the fourth quarter of 2025, net capital inflows are estimated at USD 3,471 m, corresponding to foreign capital inflows (USD 10,749 m), Colombian capital outflows (USD 7,174 million), payments from non-residents to residents for gains on financial derivatives transactions (USD 439 m), and the increase in foreign reserves resulting from balance of payments transactions (USD 543 m) (Graph 2).

Graph 2. Components of the Financial Account of Colombia's Balance of Payments

Figures in millions of U.S. dollars
Line and bar graph with quarterly data from 2019 to 2025; figures in millions of U.S. dollars. The graph shows three series: A. Colombian capital outflows (red bars), with positive values representing investments or assets acquired abroad. These outflows increase gradually over the period, with peaks exceeding USD 8,000 million toward 2025. B. Foreign capital inflows (gray bars), with negative values throughout the entire period. The magnitudes range between USD -2,000 million and approximately USD -10,000 million, with larger declines between 2021 and 2022. Financial account (A + B) (black line), fluctuating between balances close to USD -2,000 million and USD -8,000 million. It shows a progressive deterioration between 2020 and 2022, followed by a partial recovery between 2023 and 2024 before declining again in 2025.
Figures as a percentage of GDP
Line and bar graph with quarterly data from 2019 to 2025; figures as a percentage of GDP. The graph shows three series: A. Colombian capital outflows (red bars), with positive values ranging between 0.0% and approximately 7.0% of GDP. These figures show marked increases between 2020 and 2021, followed by more moderate variations toward 2024 and 2025. B. Foreign capital inflows (gray bars), with negative values throughout the entire period, fluctuating between approximately −2.0% and −14% of GDP. The largest inflows are observed between 2021 and 2022. Financial account (A + B) (black line), reflecting predominantly negative balances. It remains between −3.0% and −10% of GDP, with a progressive deterioration between 2019 and 2022, a partial recovery during 2023, and a slight downward trend in 2024 and 2025.

Note: Following the sixth edition of the International Monetary Fund’s Balance of Payments Manual, the financial account is presented with the same sign as the current account. For example, if the current account is in deficit, the financial account is negative, indicating that the economy resorts to external financing and/or liquidates its external assets to finance its excess current expenditure.
Source: Banco de la República.

2. Quarterly and Annual Evolution of the Current and Financial Accounts of Colombia’s Balance of Payments

(a) Current Account

The estimated current account deficit for the fourth quarter of 2025 (USD 3,912 m, 3.1% of GDP) widened by USD 1,095 m compared to the immediately preceding quarter. This increase was driven by the rise in net primary income outflows and the larger deficit in the trade balance of goods and services, partially offset by the expansion of the current transfers surplus (Graph 1).

In 2025, the current account deficit (USD 10,883 m, 2.4% of GDP) was USD 3,871 m higher than a year earlier. This was explained by the widening of the trade balance of goods deficit, partially offset by the increase in net income from current transfers, a lower trade balance of services deficit, and lower primary income net outflows.

The current account deficit in the fourth quarter of 2025 represented 3.1% of GDP, compared to 2.4% in the previous quarter.

(b) Financial Account

Net capital inflows of USD 3,471 m (2.7% of GDP) recorded in the financial account during the fourth quarter of 2025 increased by USD 1,220 m compared to the immediately preceding quarter. This result was explained by net disbursements of loans and other foreign credits and lower deposits abroad, partially offset by lower net income from portfolio and direct investments.

In 2025, the financial account (USD 9,047 m, 2.0% of GDP) recorded higher net inflows of USD 3,470 m compared with those received in 2024. This dynamic was mainly explained by the increase in net income from portfolio investment, partially offset by higher deposits abroad, lower net income from direct investment, and reductions in net disbursements of loans and other foreign credits.

Net capital inflows in the fourth quarter of 2025 represented 2.7% of GDP, compared to 1.9% in the previous quarter.

3. International Investment Position (IIP)

As of the end of December 2025, Colombia recorded a negative net international investment position of USD 200,403 m (43.7% of annual GDP), resulting from assets of USD 308,006 m (67.2% of annual GDP) and liabilities of USD 508,409 m (110.9% of annual GDP). Of the total asset balance, 38.1% corresponds to portfolio investments, 26.6% to Colombian direct investment abroad, 21.6% to reserve assets[AT1.1][PE1.2], and the remaining 13.7% to other assets, including loans, other foreign credits, deposits abroad, and financial derivatives. Liabilities are broken down into 56.4% foreign direct investment, 23.1% portfolio investment, and the remaining 20.6% other investments (where external loans stand out).

Graph 3. International Investment Position as of December 2025 (USD -200,403 m, 43.7% of GDP 1)

Assets
USD 308,006 m
The graph exhibits the percentages of assets in the international investment position as of December 2025. Direct investment, 26.6%. Portfolio investment, 38.1%. Derivatives, 0.4%. Other investment, 13.3%. Reserve assets, 21.6%.
Liabilities
USD 508,409 m
The graph exhibits the percentages of liabilities in the international investment position as of December 2025. Direct investment, 56.4%. Portfolio investment, 23.1%. Derivatives, 0.0%. Other investments, 20.6%.

1 The GDP figure in U.S. dollars corresponds to the sum of the last four quarters.

Report on Evolution of the Balance of Payments and International Investment Position (Complete issues - available since 2023)

This report describes the main results of the quarterly and annual evolution of the country's balance of payments.

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Note 01 September 2021: Current account statistics of the balance of payments were revised from 2015 to 2020 as a result of: i) the findings of the reconciliation exercise of external sector statistics and net lending of financial accounts published by Banco de la República and the Rest of the World Account of the System of National Accounts (SNA) disclosed by the National Administrative Department of Statistics (DANE in Spanish) that evidenced differences in the values of free trade zone exports; and ii) improvements in the sources of information and estimation methods implemented by Banco de la República between 2015 and 2020. As a result of the above, the current deficit was revised downward between 0.07 percentage points (pp) and 0.2 pp of Gross Domestic Product (GDP) in dollars for the periods 2015 and 2017. On the other hand, for the years 2018 to 2020, the revision implied an increase in the deficit level between 0.16 pp and 0.18 pp of GDP in dollars. The details of this revision can be consulted in the Statistical Review document of the current account of Colombia’s Balance of Payments. Statistical Review document of the current account of Colombia’s Balance of Payments (Only in Spanish).