China’s current account surplus amounted to 264.2 billion U.S. dollars in 2023, the country’s foreign exchange regulator said on Sunday.
The current account surplus to gross domestic product ratio was 1.5 percent last year, which is within a reasonable and balanced range, according to the State Administration of Foreign Exchange.
Data released by the administration further highlighted that the surplus under trade in goods hit $608 billion last year, marking the second-highest level in history. Wang Chunying, spokesperson for the administration, attributed this growth to China’s expanding foreign trade quarter by quarter, driven by the economic recovery trend.
Despite the positive numbers, certain sectors like tourism and transportation continued to face deficits. The tourism sector recorded a shortfall of $180.6 billion, emphasizing the challenges these industries are encountering.
On the capital front, foreign investment in China experienced a net inflow, while overseas investment in the domestic securities market showed improvement. This trend indicates a strong willingness among foreign investors to engage in business in China and invest in RMB assets.
Looking towards 2024, Wang expressed optimism about China’s ability to maintain basic equilibrium in the balance of payments. With improvements in both internal and external environments, China seems to have a solid foundation and conditions necessary to sustain this equilibrium.
