IMF: China makes progress in external rebalancing

CNC
Added On July 19, 2019

According to the International Monetary Fund (IMF), China's current account surplus in 2018 narrowed further, as its external position was assessed to be in line with fundamentals and desirable policies, reflecting progress in rebalancing.

According to the IMF's newly released annual External Sector Report, China's current account surplus continued its decline in 2018, reaching 0.4 percent of GDP in 2018.
   
This mainly reflects a shrinking trade balance, driven by high import volume growth, and a continued increase in the services deficit, mostly driven by tourism, as well as higher prices of certain products.
 
In recent years, China's economy has become increasingly reliant on domestic demand rather than exports.
 
According to the latest data from the National Bureau of Statistics, retail sales of consumer goods rose 8.4 percent year on year in the first half of 2019, with online sales surging 17.8 percent.