# Colombia’s external rebalancing: less than meets the eye | Capital Economics

> Capital Economics reports that Colombia's current account deficit narrowed sharply last year to its lowest level since the aftermath of the Global Financial Crisis. The narrowing reflected weak domestic demand rather than a structural improvement, and the analysts expect the external deficit to widen again as the economy recovers.

- Date: 2024-03-04 · published 2024-03-04T12:00:00.000Z
- Category: macro · region Colombia · magnitude low
- Page: https://feedsoft.ai/events/31473-colombia-s-external-rebalancing-less-than-meets-the-eye-capital-economics
- Commodities: [Colombian Peso (COP per USD)](https://feedsoft.ai/c/USDCOP.md)

## Why it matters

A widening external deficit as domestic demand recovers would increase demand for dollars and put downside pressure on the peso, which raises the cost of dollar-priced feed imports for Colombian buyers.

## Read by commodity

- USDCOP: bullish ▲

## Sources

- capitaleconomics.com: https://www.capitaleconomics.com/publications/latin-america-economics-update/colombias-external-rebalancing-less-meets-eye

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.