Assessing the current account gap in Colombia: a normative estimation approach
2 Articles
2 Articles
Assessing the current account gap in Colombia: a normative estimation approach
The current account (CA) balance indicates a country’s savings-investment position; sus-tained deficits require foreign capital. To monitor Colombia’s external vulnerability risk, we estimate a normative CA level using an unbalanced panel model based on long-run funda-mental structural variables. The difference between the observed CA and this normative level, termed the CA gap, signals potential macroeconomic imbalances and vulnerability, of-te…
The Banco de Bogotá believes that this year will continue to weigh the highest levels of imports of diesel and liquefied natural gas. Image: courtesy Ecopetrol The current account deficit in Colombia, which increased to 2.2% of GDP in the first quarter of this year on account of a difference of US$2.290 million, could expand its amount to reach 2.6% in 2025, according to the daily report of the Banco de Bogotá. The analysis anticipates that hous…
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