China's current account surplus down 18% in Q1
2011-05-24 17:02:08
China's current account surplus fell 18 per cent in the first quarter of 2011 from the same period last year, official data showed Tuesday.
The current account surplus -- the broadest measure of trade with the world -- reached US$29.8 billion in the first three months of the year, the State Administration for Foreign Exchange (SAFE) said in a statement.
That was markedly lower than the US$102.1 billion seen in the fourth quarter of last year, according to revised SAFE data.
Net inflow of direct investment into China, the world's second-largest economy, totalled US$42.6 billion in the first quarter compared with US$39.1 billion in the last three months of last year.
In 2010, China's current account surplus surged 17 per cent on year to US$305.4 billion, according to the revised data, as US and European demand for Chinese exports recovered after the global financial crisis.
While rising demand for Chinese goods boosts growth, it also means the central bank has to work harder to control the value of the yuan and to stem the flood of liquidity, which has been fuelling inflation.