Germany’s current account surplus shrank for the fifth year in a row in 2020 as China overtook Europe’s biggest economy during the COVID-19 pandemic to run the world’s largest current account surplus, a survey by the Ifo institute showed on Friday, reported Reuters.
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.
The Munich-based Ifo institute said China’s current account surplus, which measures the flow of goods, services and investments, more than doubled to $310 billion last year.
Germany’s current account surplus shrank to $261 billion in 2020 as demand for cars, machinery and equipment fell in many of its key export markets, the survey showed. Japan came in third with a current account surplus of $158 billion.