Colombian foreign trade: Exports and imports decrease in the first half of 2024
Between January and July 2024, Colombian foreign trade showed a drop in exports of -0.8% and a contraction in imports of -1.7, according to the most recent data from DANE.
China and the United States remained Colombia’s main trading partners, with the United States leading imports and exports.
Looking ahead, the recovery of Colombian foreign trade will depend largely on international demand for Colombian commodities, as well as on the country’s ability to diversify its export supply towards higher value-added products.
You may also read: How the lower U.S. interest rate affects the Colombian economy
Colombia’s foreign trade performance
Exports: fuels and extractive industries in decline
During the period from January to July 2024, Colombian exports reached USD $28,635.8 million FOB, which represented a slight decrease of 0.8% compared to the same period in 2023. Despite this overall drop, some sectors showed a positive performance.
The Agricultural, food and beverages group was one of the most dynamic, with a growth of 8.9%, equivalent to USD $6,536.6 million. This increase was driven mainly by sales of bananas, which grew by 59.1%, and cut flowers and foliage, which rose by 10.3%. Unroasted coffee also contributed positively, with an increase of 6.2%.
The Manufacturing sector also showed a slight recovery, with a 1.3% growth in exports, reaching USD $5,942.1 million. Sales of machinery and transport equipment grew by 14.8%, and chemical and related products increased by 7.1%.
On the other hand, exports of fuels and extractive industry products fell by 6.6%, with total sales of US$14,054.4 million. The decline in sales of hard coal, coke and briquettes, which fell by 23.3%, was an important factor in this drop.
Despite this contraction, exports of oil and petroleum products grew by 3.6%, demonstrating the continued importance of the energy sector in Colombian foreign trade.
In terms of destinations, the United States is still the main trading partner with a 27.9% share of the total value exported in July 2024.
Other important destinations influencing Colombia’s foreign trade balance include Panama (9.3%), India (5.6%) and China (5.5%).
You may also read: Chinese steel is sinking Latin America’s steel industry
Imports: Drop in agricultural goods and fuels
On the import side of Colombian foreign trade, the country recorded a total of USD $36,153.1 million CIF between January and July 2024, which represented a decrease of -1.7% compared to the same period of 2023. This decline was driven by a drop in external purchases of agricultural goods and fuels.
The Agricultural, food and beverages group was the most affected, with a contraction of -8.3%, equivalent to USD $5,243.6 million. The products that fell the most were coffee, tea, cocoa and spices (-33.2%); seeds and oleaginous fruits (-26.6%); and concentrate for animals (-18.3%). On the other hand, the products that grew the most were meat and meat preparations (25.0%); sugars, sugar preparations and honey (23.2%); and vegetables and fruits (17.1%).
The group of Fuels and products of extractive industries also showed a decrease, with a drop of 5.2%, reaching USD $3,929.8 million. Lower imports of petroleum and petroleum products, which fell by -16.4%, were key to this contraction. Meanwhile, other fuels and extractive industry products grew by 160.2%.
On the other hand, imports of the Manufacturing group grew by 0.1%, reaching USD $26,910.0 million, driven by higher purchases of machinery and power generating equipment (21.1%) and office and automatic processing machinery (18.3%). Purchases of products that decreased the most were other transportation equipment (-48.3) and machinery, apparatus and electrical appliances (-17.1%).
As for the main countries of origin, the United States was Colombia’s largest supplier, accounting for 25.8% of total imports in the period from January to July 2024. China ranked second, with a 23.5% share, followed by Brazil (5.4%) and Mexico (5.2%).
Trade balance: Persistent deficit
Colombian foreign trade for the first seven months of the year leaves a trade balance with a deficit of USD $5,577.4 million, similar to the deficit of USD $5,855.4 million recorded in the same period of the previous year.
In July 2024, the trade deficit was USD $617.9 million, compared to the deficit of 527.7 million in the same month of 2023, showing a deepening of the imbalances in Colombian foreign trade.
This expansion was mainly related to the increase in imports of manufactured goods, particularly machinery and transportation equipment, and a decrease in oil exports.
Remittances to Colombia continue to grow: over USD $6 billion entered the country between January and July
