But technically, the conditions would be ripe for the yuan’s emergence as a more credible rival to the dollar. Just as its massive surpluses of yore had big consequences for the global economy, so does this swing in the opposite direction.China still exports many more goods than it imports, to the tune of nearly $500bn annually. China saw a current account deficit in the first quarter of 2018 due to seasonal factors and rapid growth in goods imports. A country may need to operate on borrowed means when it runs into a deficit as the total Unlike 1993, however, the investment bank predicts that the shift toward a shortfall might be "sustained," setting the world's second biggest economy on a path to becoming more reliant on foreign capital from 2020 onward.China's current account surplus has slipped from 10.3 percent of its GDP in the third quarter of 2017, to just 0.4 percent in the third quarter of 2018. The U.S. current account deficit was $491 billion in 2018. The SAFE is expected to release 2018 preliminary current and capital account data next month. REUTERS/Thomas White/Illustration
In recent years capital outflows have pressed down on the yuan, but the current-account surplus has countered that effect. The deficit on secondary income (current transfers) decreased to $110.7 billion from $118.6 billion as secondary income payments decreased more than secondary income receipts. China's current account surplus has slipped from 10.3 percent of its GDP in the third quarter of 2017, to just 0.4 percent in the third quarter of 2018. Current Account in China averaged 385.09 USD HML from 1998 until 2020, reaching an all time high of 1330.85 USD HML in the fourth quarter of 2008 and a record low of -403.15 USD HML in the first quarter of 2018. But December’s trade surplus was the largest in three years. China recorded a Current Account deficit of 337 USD HML in the first quarter of 2020. "This means that China will need to improve its business environment further and attract (foreign direct investment) inflows, accelerate opening up of the domestic equity and bond markets, and promote RMB's status as an international reserve currency," it said, referring to another name for the Chinese yuan.But investors can seize some opportunities amid those developments.
"We expect China to shift to an annual current account deficit from 2019 onwards due to a slipping national saving rate amid an aging population," said the bank.A deficit means that a country is spending more than it is getting in income.
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America’s deficit remains the world’s biggest, $466bn last year. “Based on preliminary statistics, China’s current showed a certain surplus in 2018, which continued to be within a reasonable range,” Wang Chunying, spokeswoman at for State Administration of Foreign Exchange (SAFE), told Chinaforex.com.cn, the website of the regulator’s publication. At the same time its trade deficit in services is getting bigger, largely thanks to all its tourists venturing abroad (see chart).At bottom, a current-account balance is the difference between a country’s investment and savings. Find Out Current Account is the sum of the balance of trade (exports minus imports of goods and services), net factor income (such as interest and dividends) and net transfer payments (such as foreign aid).
The Trading Economics Application Programming Interface (API) provides direct access to our data. Current Account Likely To End 2018 In Deficit. Current account balance (% of GDP) - China International Monetary Fund, Balance of Payments Statistics Yearbook and data files, and World Bank and OECD GDP estimates. The bank explained that rising stock and bond portfolio flows will lead to rising revenues for the operator, helping its stock do well over the next two to three years.Got a confidential news tip? China will develop more foreign exchange trading tools and improve liquidity of its currency market, Wang added.
1998-2020 Data | 2021-2022 Forecast | Historical | ChartDownload historical data for 20 million indicators using your browser.Direct access to our calendar releases and historical data. Whether blame was ascribed to its undervalued yuan or its frugal people, the problem seemed clear.
Analysts have attributed the current account deficit to China’s narrowing trade surplus and its widening services trade deficit. China records first current account deficit in 20 years in H1 2018 The deficit in the current account stood at $28.3 bn in the January-June period, down from $34.1 bn in the first quarter, the State Administration of Foreign Exchange (SAFE) said in a statement.