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Business / Macro

China's current account surplus plunges in H1

(Xinhua) Updated: 2016-10-01 09:23

BEIJING - China's current account surplus plunged 40 percent from a year earlier to $103.5 billion in the first half of 2016, official data showed Friday.

During the same period, the proportion of China's current account surplus to GDP dropped to 2 percent from 3.3 percent a year ago, the State Administration of Foreign Exchange said in a statement.

The proportion is "still at a reasonable and balanced level," the statement said.

The goods trade surplus, a major contributor to the current account surplus, dropped 9 percent year on year to $229.8 billion in the first half due to a sluggish global economic recovery and poor demand.

The service trade deficit surged 40 percent to $113.5 billion.

China's current account has witnessed a surplus for 22 consecutive years, mainly due to strong exports in manufactured goods. The proportion of the surplus to China's GDP reached a peak of 10 percent in 2007.

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