The National Administrative Department of Statistics (DANE) reports Colombia’s trade deficit expanded to $1.279 billion in January 2025.
This figure marks a 17.9% increase compared to the same month last year, highlighting persistent trade imbalances as imports continue to outpace exports. China cemented its position as Colombia’s primary trading partner with a bilateral deficit of $1.242 billion.
The Asian giant has officially displaced the United States as Colombia’s largest source of imports. Mexico followed with a $155 million deficit, while Germany contributed $108 million to the negative balance.
Colombia maintained positive trade relationships with several regional neighbors. The country recorded surpluses with Ecuador ($108 million), Venezuela ($55 million), and Peru ($47 million), providing some counterbalance to the overall deficit.
Total imports reached $5.378 billion, climbing 8.5% year-over-year. Manufacturing dominated these purchases, accounting for 74.7% of all imports. The agricultural sector contributed 14.4%, while fuels represented 10.8% of total import value.
Colombia’s Trade Deficit Widens as China Strengthens Trading Dominance. (Photo Internet reproduction)
The deficit with China grew significantly, jumping 27.3% compared to January 2024. Trade experts view this trend as concerning given China’s expanding influence in Colombian markets. Colombia primarily imports electronic equipment, computers, and semiconductor devices from China.
Colombia’s Trade Dynamics
Colombian exports to China remain dominated by raw materials. Crude petroleum, coal briquettes, and ferroalloys top the list of exports to the Asian economic powerhouse. This trade pattern reinforces Colombia’s reliance on commodity exports.
Economic forecasts suggest Colombia’s current account deficit will widen further throughout 2025. The OECD projects 2.8% GDP growth for Colombia in 2025, up from 1.8% in 2024. This growth may stimulate additional imports.
Trade experts suggest Colombia should consider negotiating a Free Trade Agreement with China. Such an agreement could potentially help balance trade relations and increase Colombian exports to Chinese markets.
The persistent trade deficit presents significant challenges for Colombia’s economic stability. Policymakers face pressure to diversify export markets, strengthen domestic production, and improve the competitiveness of Colombian products globally.