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Colombia Trade Balance August 2020

Colombia: Exports drop for the seventh month running August

On an annual basis, merchandise exports contracted 21.3% in August, marginally less than July’s 21.7% drop and marking the seventh consecutive decline. August’s contraction was broad-based and largely reflected collapsing fuels and extractive industry exports, as well as a considerable drop in manufacturing shipments. That said, August’s reading marked the smallest contraction in six months, likely owing to the gradual recovery of activity globally in line with the easing of Covid-19 associated restrictions.

Meanwhile, in July—the latest month for which data is available—merchandise imports declined at a softer pace of 20.9% in annual terms, after plunging 28.5% in the previous month. That said, the merchandise trade deficit narrowed to USD 0.9 billion in July from USD 1.1 billion in July 2019. Lastly, the trend improved slightly, with the 12-month trailing merchandise trade balance recording a USD 10.7 billion deficit in July, compared to the USD 10.9 billion deficit tallied in June.

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