Which country has the biggest current account surplus 2021?
John Peck
Updated on April 05, 2026
China overtakes Germany with largest current account surplus-Ifo.
What causes a surplus in the current account?
A current account surplus is partly due to high exports, but the other side of the equation is imports and domestic demand. In a boom, we see a rise in the current account deficit because consumer spending rises, leading to an increase in imports. During a boom, unemployment falls and inflation rises.
Why is a current account surplus equivalent to foreign investment?
Why is a current account surplus equivalent to foreign investment? A current account surplus leads to the net accumulation of foreign assets. There is an inflow of foreign funds, which causes the exchange rate to rise, making foreign goods cheaper and results in current account deficits.
Why does Germany have a current account surplus?
Germany’s current account surplus can mainly be attributed to the fact that far more German products and services are sold overseas than imported into Europe’s largest economy. Ifo economist Christian Grimme said the German surplus increased last year to some 7.6% of gross domestic product (GDP) from 7.3% in 2018.
Why does Australia have a current account surplus?
Andrew Tomadini, head of International Statistics at the ABS said: “Australia’s seventh consecutive quarterly Current account surplus, in the December quarter 2020, was driven by strong exports of Australia’s metal ores (up $3.7 billion) and cereal grains (up $1.3 billion) on the back of favourable growing conditions …
Why current account surplus is better than current account deficit?
A current account surplus increases a nation’s net foreign assets by the amount of the surplus, and a current account deficit decreases it by that amount. A country is said to have a trade surplus if its exports exceed its imports, and a trade deficit if its imports exceed its exports.
Which countries have the highest current account surplus?
Top 20 economies with the largest surplus
| Rank | Economy | CAB (million US dollars) |
|---|---|---|
| 1 | Germany | 280,238 |
| 2 | Japan | 185,644 |
| 3 | China | 141,335 |
| 4 | Netherlands | 90,207 |
Which country of the world has highest current account surplus in 2020?
China
In 2020, according to the World Bank, the ten countries with the largest current account surpluses as a percentage of GDP were China, Germany, Japan, South Korea, the Netherlands, Italy, Singapore, Russia, Australia, and Kuwait.
Which country has highest current account deficit?
Top 20 countries with the largest deficit
| Rank | Country | CAB (Million US dollars) |
|---|---|---|
| 1 | United States | -480,225 |
| 2 | United Kingdom | -121,921 |
| 3 | Kenya | -57,594 |
| 4 | Brazil | -50,927 |
Why does Germany have a budget surplus?
Larger-than-expected tax income and low interest rates were partly responsible for the surplus, the finance minister explained. “We’ve had decent economic developments and, through that, have brought in additional tax revenue,” Scholz said.
What is the difference between a current account deficit and surplus?
The advanced economies, such as the United States (see chart), run current account deficits, whereas developing countries and emerging market economies often run surpluses or near surpluses. Very poor countries typically run large current account deficits, in proportion to their gross domestic product (GDP),…
Why is Thailand’s current account surplus so large?
In Thailand, the massive current account surplus resulted from high household debts and prolonged political uncertainty. These economies are struggling with domestic structural headwinds, ranging from rapidly ageing populations, high sensitivity to rate hikes, to low productivity growth.
Are current account surpluses insulating Northeast Asia from the EM turmoil?
Ironically, while large current account surpluses have insulated Northeast Asia from the EM turmoil, they are generally not a positive sign in terms of long-run growth potential.
Should countries with large shocks run a current account deficit?
Conversely, research also suggests that countries that are subject to large shocks should, on average, run current account surpluses as a form of precautionary saving. Does it matter how long a country runs a current account deficit?
