Colombia’s income balance is negatively correlated with its trade balance owing to the risk-sharing properties of foreign liabilities, which have a large FDI component, and resilient remittances. Colombia’s increasing net external liabilities (worsening NIIP) have not yet translated to a lower income balance, and its positive foreign-currency position suggests there are no adverse income or balance sheet effects from depreciations so far. With persistent current deficits and the risk of higher global interest rates, fiscal and structural reforms would help preserve these favorable dynamics in the external position.