China’s current account surplus widened to $163.8 billion in the fourth quarter of 2024, significantly surpassing the revised $58.5 billion surplus recorded in the same period last year but falling short of the preliminary estimate of $180.7 billion.
China current account surplus largest on record
This marked the largest quarterly surplus on record, highlighting the resilience of China’s trade sector despite global economic uncertainties.
The expansion in the current account surplus was largely driven by a sharp increase in the goods surplus, which rose to $249.8 billion from $151.2 billion a year earlier, as exports surged 11.1% amid strong global demand and government support measures. In contrast, the services deficit narrowed to $47.4 billion from $57.7 billion, reflecting a slower pace of outbound tourism spending and growing revenues from sectors such as transport and financial services.
Not all components of the current account improved
However, not all components of the current account improved. The primary income deficit widened to $43.3 billion from $39.9 billion, suggesting continued outflows from investment-related payments such as dividends and interest expenses. Meanwhile, the secondary income surplus remained relatively stable at $4.7 billion, compared to $4.9 billion previously.
For the full year 2024, China’s current account surplus climbed to $423.9 billion, a significant increase from the $263.4 billion recorded in 2023. The robust external balance highlights China’s strong export performance and sustained trade competitiveness, even as global trade faces uncertainties from geopolitical tensions, supply chain disruptions, and shifting demand dynamics.
