China's Current Account, Non-Reserve Account Saw Surplus Last Year, SAFE Says
Xu Wei
/SOURCE : Yicai
China's Current Account, Non-Reserve Account Saw Surplus Last Year, SAFE Says

(Yicai Global) Feb. 9 -- Both China's current account and non-reserve financial account saw surpluses with the increase of reserve assets, preliminary data for China's balance of international payments (2017) the State Administration of Foreign Exchange (SAFE) issued yesterday indicate.

The current account surplus stood at USD172 billion last year, of which the ratio to GDP in the same period was 1.4 percent. The goods trade surplus based on international payments reached USD476.1 billion, of which imports and exports rose 11 percent and 16 percent annually, respectively, showing a sound and steady rise in foreign trade.

China's current account surplus swelled to USD62 billion in last year's fourth quarter. The goods trade surplus was USD141 billion, while the service deficit came in at USD63 billion.

China's deficit of capital and financial account was USD9 billion throughout last year, of which USD100 million was capital account deficit. The non-reserve financial account recorded a surplus of USD82.5 billion, while accumulating a deficit of USD475 billion in 2016. Direct investment showed a net inflow of USD64 billion, compared with a net outflow of USD47 billion in 2016.

International payment transactions pushed China's reserve assets up USD91.5 billion last year, reversing the negative growth of USD444 billion in 2016. Specifically, foreign exchange reserves rose by USD93 billion, while the reserve position in the International Monetary Fund fell by USD1.5 billion.

China generally remained steady in its international payments last year with the shift of cross-border capital flows from a net outflow to a basic balance. As the steady rise of the economy further solidifies, China will have a more solid foundation for the overall balance of international payments, SAFE said.

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Keywords: SAFE , Current Account Surplus