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Colombia's external sector: trade, the current account, foreign direct investment and remittances

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Last verified: 2026-10-26 · Status: Changing

Colombia runs a current account deficit, USD 5,981 million or 2.3 percent of GDP in the first half of 2026, widening to 3.5 percent of GDP in the second quarter, financed by foreign direct investment that reached USD 4,182 million (3.1 percent of GDP) in that quarter alone. Goods exports rose 12.8 percent to USD 36,880.7 million in January to August 2026, led by fuels and a near doubling of gold sales, but imports grew faster, 17.2 percent, leaving a goods deficit of USD 13,877.1 million. Remittances, USD 3,347 million in the first quarter, and reserves of nearly USD 67 billion at the end of June cushion the external accounts, under an exchange law whose stated aims include encouraging foreign capital.

Key facts

Current account balance, first half 2026-5981 USD millionBanco de la República balance of payments report, Q2 2026, as of 2026-06-30 · in force
Current account balance, first half 2026-2.3 % of GDPBanco de la República balance of payments report, Q2 2026, as of 2026-06-30 · in force
Current account balance, Q2 2026-3.5 % of quarterly GDPBanco de la República balance of payments report, Q2 2026, as of 2026-06-30 · in force
Foreign direct investment inflows, Q2 20264182 USD millionBanco de la República direct investment press note, April to June 2026, as of 2026-06-30 · in force
Foreign direct investment inflows, first half 2026 (Q1 USD 3,956 million plus Q2 USD 4,182 million, calculated)8138 USD millionBanco de la República direct investment press note, April to June 2026, as of 2026-06-30 · in force
Foreign direct investment inflows, Q2 20263.1 % of quarterly GDPBanco de la República direct investment press note, April to June 2026, as of 2026-06-30 · in force
Growth of FDI inflows, Q2 2026 over Q2 202524 %Banco de la República direct investment press note, April to June 2026, as of 2026-06-30 · in force
Share of Q2 2026 FDI going to mining and oil22.1 %Banco de la República direct investment press note, April to June 2026, as of 2026-06-30 · in force
Share of Q2 2026 FDI from the United States (immediate source country, calculated: USD 1,169 million of USD 4,182 million)28.0 %Banco de la República direct investment press note, April to June 2026, as of 2026-06-30 · in force
Net international investment position, end of June 2026-204240 USD millionBanco de la República balance of payments report, Q2 2026 (40.0 percent of annual GDP), as of 2026-06-30 · in force
International reserves, end of June 2026 (nearly)67 USD billionReport of the Board of Directors to Congress, July 2026 (Ley 31 de 1992 art. 5), as of 2026-06-30 · in force
Remittance inflows, Q1 20263347 USD millionReport of the Board of Directors to Congress, July 2026, as of 2026-03-31 · in force
Goods exports, January to August 202636880.7 USD million FOBDANE EXPO bulletin, 5 October 2026, as of 2026-08-31 · in force
Growth of goods exports, January to August 202612.8 %DANE EXPO bulletin, 5 October 2026, as of 2026-08-31 · in force
Fuels and extractive products share of exports, January to August 202640.3 %DANE EXPO bulletin, 5 October 2026, as of 2026-08-31 · in force
Non monetary gold exports, January to August 20265279.3 USD million FOBDANE EXPO bulletin, 5 October 2026, as of 2026-08-31 · in force
United States share of exports, January to August 202628.3 %DANE EXPO bulletin, 5 October 2026, as of 2026-08-31 · in force
Goods imports, January to August 202653746.4 USD million CIFDANE IMPO bulletin, 21 October 2026, as of 2026-08-31 · in force
Growth of goods imports, January to August 202617.2 %DANE IMPO bulletin, 21 October 2026, as of 2026-08-31 · in force
China share of imports, January to August 202628.7 %DANE IMPO bulletin, 21 October 2026, as of 2026-08-31 · in force
Goods trade balance, January to August 2026-13877.1 USD million FOBDANE IMPO bulletin, 21 October 2026, as of 2026-08-31 · in force

The rule

1. The exchange regime aims to promote economic and social development and exchange balance. The regulations issued under the law must pursue, among other goals, the internationalisation of the economy, freer foreign trade with particular support for exports, easier current transactions with the rest of the world, encouragement of foreign capital investment in the country, appropriate controls on capital movements, and a level of international reserves sufficient for normal external transactions, coordinated with macroeconomic policy.Ley 9 de 1991 (exchange framework law), Diario Oficial No. 39.634, Art. 2, 1991-01-17 official text · verified 2026-10-26
2. The Government determines which exchange operations are subject to the regime, by category: acquisition or holding of assets abroad by residents and in Colombia by non residents; operations that make a resident a creditor or debtor of a non resident; holdings of foreign currency assets by residents; cross border movements of currency; and acts that extinguish obligations between residents and non residents. The exchange market consists of all foreign currency that must be channelled through authorised intermediaries, and the Government sets which operations need not go through it. Foreign currency income from services provided by residents is exempt from mandatory channelling, unless international reserves fall below three months of imports.Ley 9 de 1991 (exchange framework law), Art. 4 and art. 6 (including paragraph), 1991-01-17 official text · verified 2026-10-26
3. Banco de la República manages the international reserves in the public interest, for the benefit of the national economy and to facilitate the country's payments abroad, investing them under criteria of security, liquidity and return in freely convertible reserve currencies or gold. It may not grant credit against the reserves, may hedge risks, and the reserves cannot be seized by creditors.Ley 31 de 1992 (Banco de la República organic law), Art. 14, 1992-12-29 official text · verified 2026-10-26
4. Foreign trade and the exchange regime are set through framework laws: Congress lays down general rules and objectives, and the Government regulates foreign trade, the exchange regime (in line with the functions of Banco de la República's Board) and changes customs tariffs for trade policy reasons by decree. Laws in this area can only be proposed by the Government, except the tariff power. Trade treaties need congressional approval and prior Constitutional Court review, although economic and commercial treaties agreed within international organisations that so provide may be applied provisionally.Constitución Política de Colombia de 1991, Art. 150 Nº 19 (b) and (c); art. 154; art. 224; art. 241 Nº 10, 1991-07-04 official text · verified 2026-10-26
5. Second quarter 2026 balance of payments: a current account deficit of USD 4,702 million (3.5 percent of quarterly GDP), driven by a goods deficit of USD 4,915 million, a factor income deficit of USD 3,287 million and a services deficit of USD 631 million, partly offset by net current transfers (which include remittances) of USD 4,131 million. Net capital inflows in the financial account were USD 3,719 million (2.8 percent of GDP), including a USD 550 million increase in reserves. For the first half the deficit was USD 5,981 million (2.3 percent of GDP), USD 1,854 million more than a year earlier. At the end of June 2026 the net international investment position was minus USD 204,240 million (40.0 percent of annual GDP), with foreign direct investment 57.1 percent of external liabilities.Banco de la República, Informe de la Evolución de la Balanza de Pagos y de la Posición de Inversión Internacional, II trimestre de 2026, Report published 1 September 2026, 2026-09-01 official text · verified 2026-10-26
6. Foreign direct investment inflows were USD 4,182 million in the second quarter of 2026 (3.1 percent of quarterly GDP), USD 800 million (24 percent) more than a year earlier and USD 226 million more than the first quarter (USD 3,956 million). By activity: financial and business services USD 1,497 million (35.8 percent), mining and oil USD 923 million (22.1 percent), manufacturing USD 583 million (13.9 percent), trade, restaurants and hotels USD 411 million (9.8 percent) and electricity, gas and water USD 377 million (9.0 percent). By immediate source country the largest were Panama (USD 1,288 million), the United States (USD 1,169 million), Switzerland (USD 404 million), Anguilla, Luxembourg, Spain, England and Chile. Colombian direct investment abroad was USD 994 million.Banco de la República, Flujos de inversiones directas en la economía colombiana, abril a junio 2026, Press note, September 2026, 2026-09-01 official text · verified 2026-10-26
7. Goods trade, January to August 2026: exports USD 36,880.7 million FOB, up 12.8 percent; fuels and extractive products 40.3 percent of the total (up 16.9 percent), agricultural products, food and drink 26.4 percent (down 4.1 percent), manufactures 19.0 percent (down 1.5 percent) and other sectors 14.4 percent, almost all non monetary gold (USD 5,279.3 million, up 95.1 percent). The United States took 28.3 percent of exports, followed by Panama, Italy, India, Canada, Brazil and the Netherlands. Imports were USD 53,746.4 million CIF, up 17.2 percent, with China supplying 28.7 percent, followed by the United States, Brazil, Mexico, Germany, India and Japan. The goods balance was a deficit of USD 13,877.1 million FOB, against USD 10,604.5 million a year earlier.DANE, boletines técnicos Exportaciones (EXPO) agosto 2026 (5 October 2026) and Importaciones (IMPO) agosto 2026 (21 October 2026), Sections 2.2, 3.2 and 4.2, 2026-10-21 official text · verified 2026-10-26
GroupJan to Aug 2025 (USD million FOB)Jan to Aug 2026 (USD million FOB)ChangeShare 2026
Fuels and extractive products12,715.314,863.416.9%40.3%
Agricultural products, food and drink10,147.99,731.5-4.1%26.4%
Manufactures7,100.66,990.7-1.5%19.0%
Other sectors (mainly non monetary gold)2,724.55,295.194.3%14.4%
Total32,688.336,880.712.8%100%

Exports by product group, January to August 2026. Source: DANE, EXPO bulletin August 2026 (5 October 2026), provisional figures.

ComponentQ2 2026
Goods balance-4,915
Services balance-631
Factor income (profits, dividends, interest)-3,287
Net current transfers (including remittances)4,131
Current account-4,702 (3.5% of GDP)
Net capital inflows (financial account)3,719 (2.8% of GDP)

Current account components, Q2 2026, USD million. Source: Banco de la República balance of payments report, 1 September 2026.

ActivityUSD millionShare
Financial and business services1,49735.8%
Mining and oil92322.1%
Manufacturing58313.9%
Trade, restaurants and hotels4119.8%
Electricity, gas and water3779.0%
Total FDI4,182100%

Where Q2 2026 FDI went, USD million. Source: Banco de la República direct investment press note, April to June 2026.

Worked example

  • Funding the gap. In the second quarter of 2026 the USD 4,702 million current account deficit was more than covered by USD 4,182 million of FDI plus other inflows: FDI alone financed about 89 percent of the deficit (4,182 / 4,702), which is why FDI flows matter more than portfolio flows for the peso's medium term stability.
  • Profits going home. The USD 3,287 million factor income deficit in a single quarter is largely profits, dividends and interest paid to foreign investors, the counterpart of a stock of FDI that makes up 57.1 percent of Colombia's external liabilities. See fx/dividends-and-profit-repatriation for how a dividend is registered and paid out.

Step by step

  1. Check DANE's monthly export bulletin (early each month) and import bulletin (around the 20th) for the latest goods trade; values are provisional and revised.
  2. Read Banco de la República's quarterly balance of payments report (about ten weeks after quarter end) for the current account and financing, and its direct investment note for FDI by sector and country.
  3. Register foreign direct investment with Banco de la República through the exchange rules described in fx/foreign-investment-registration, since registration is what preserves the right to repatriate.
  4. For trade with Argentina or other Mercosur members, start with trade/trade-agreements-and-rules-of-origin and compare the Argentine side at https://theargentinethread.com/guide/.

Common traps

  • Reading gold exports as a structural shift. Non monetary gold explains almost all of the 94.3 percent rise in other sectors exports in January to August 2026 (DANE), and gold flows are volatile, so headline export growth overstates the trend in non commodity exports, which fell for manufactures and agriculture.
  • Treating FDI by country as the ultimate investor. Banco de la República reports FDI by immediate source country, so Panama, Switzerland, Anguilla and Luxembourg appear among the top sources largely as holding company locations.
  • Assuming service export revenue must be converted locally. Foreign currency income from services provided by residents is exempt from mandatory channelling through the exchange market, but that exemption falls away if reserves drop below three months of imports (Ley 9 de 1991 art. 6 paragraph).

Sources

Related pages

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