China becomes world’s top net capital exporter
China passed Germany as the world’s top net capital exporter in 2015, said German think tank Ifo institute on Monday.
Last year, China reported net capital exports of $293 billion from an international perspective, beating Germany’s $280 billion in exports, according to Ifo.
Even though Germany’s net capital exports rose 8.3% of its annual economic output to hit a record high in 2015, it was the first China topped Germany since May 2010. In 2014, Germany’s net capital exports rose 7.3%.
According to the European Union, a level of 6% is sustainable in the long term, which means that Germany remains by far the greatest lender of new funds on both sides of the Atlantic to the debt-afflicted countries.
“This development was driven by goods exports, which accounted for a surplus of 262 billion euros, also marking a new record,” the Munich-based think tank said.
Ifo also predicted that with the continuation of a low oil prices and a weak euro, Germany’s current account surplus will continue to rise in 2016 and could very likely exceed 8% of its annual economic output.