China overtakes Germany to run world’s largest current account surplus

China overtook Germany to become the country with the world’s largest current account surplus in the year 2020, as per a survey by the Munich-based Ifo institute. The current account surplus of China more than doubled to $310 billion in 2020, while the current account surplus of Germany shrank for the fifth year in a row in 2020 to $261 billion. The data underlines a tectonic shift in world trade triggered by the coronavirus crisis as higher demand across the globe for medical protection gear and electronic devices boosted Chinese exports.

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The United States remained the country with the world’s largest current account deficit which rose roughly by a third to $635 billion in 2020 or 3.1% of economic output. Japan ranked third with a current account surplus of $158 billion. Ifo (Information and Forschung) Institute for Economic Research is a research institution based in Munich, Germany, which analyses economic policy.

Important takeaways for all competitive exams:

China Capital: Beijing.
China Currency: Renminbi.
China President: Xi Jinping.

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Sumit Arora

As a team lead and current affairs writer at Adda247, I am responsible for researching and producing engaging, informative content designed to assist candidates in preparing for national and state-level competitive government exams. I specialize in crafting insightful articles that keep aspirants updated on the latest trends and developments in current affairs. With a strong emphasis on educational excellence, my goal is to equip readers with the knowledge and confidence needed to excel in their exams. Through well-researched and thoughtfully written content, I strive to guide and support candidates on their journey to success.