(Bloomberg) -- China's current account returned to surplus in the second quarter due to better-than-expected exports and reduced overseas travel during the global pandemic.
The current-account balance at the end of June was $119.6 billion, the State Administration of Foreign Exchange said Friday. That was the highest since 2008 and compares with a surplus of $30.5 billion in the same period of 2019 and a deficit of $33.7 billion in the January-March period.
Key Insights
The surplus in the goods trade was $161.3 billion, the highest in data going back to 1998, while the deficit in services of $29.4 billion was the smallest since 2013.
The shrinking services deficit was due to the collapse in outbound tourism during the pandemic and also fewer inbound shipments, as China had to pay less in freight fees, according to SAFE.
China's 2Q Preliminary Current Account Surplus $119.6b (Table)
China's trade surplus stayed at a high level in the second quarter on rising demand for goods including medical supplies, a gradually reopening world economy, and falling imports.
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