China's Q3 2024 current account surplus soars to $149.6B

China recorded a substantial current account surplus of $149.6 billion in the third quarter of 2024, marking a sharp increase from $60.8 billion in the same period last year and reaching the most comprehensive surplus in two years.

China's Q3 2024 current account surplus soars to $149.6B

The surge in the surplus was primarily driven by a dramatic rise in the goods surplus, which reached a record high of $229.8 billion, up from $156.1 billion in the previous year. This increase was primarily attributed to a slowdown in domestic demand for goods, which led companies to rely more heavily on foreign markets to meet sales targets. At the same time, the services deficit narrowed to $58.5 billion, down from $60.9 billion, reflecting a slight improvement in the balance of services trade. The primary income deficit also shrank to $28.5 billion from $36.7 billion, signaling an easing in outflows related to income payments on foreign investments.

China's Q3 2024 secondary income surplus falls to $4B, reflecting economic shifts

However, the secondary income surplus, which includes remittances and transfers, contracted significantly, falling to $4 billion from $23 billion in the previous year. These figures reflect the broader shifts in China's economic landscape as the nation adapts to evolving global and domestic challenges.