Goldman Sachs has increased its annual forecast for China’s current account surplus, viewing it as an effective indicator of the country’s economic health. After analyzing fourth-quarter data, the financial institution now expects the current account surplus to reach 4.3% of GDP this year, up from the previous estimate of 4.1%. A current account surplus indicates that a country’s exports exceed its imports, leading to an inflow of foreign currency into the economy. According to Goldman Sachs experts, China’s trade surplus is likely to grow in 2026, driven by increased goods trade and a slight decline in services trade. The report also notes that foreign direct investment (FDI) into China is expected to remain stable, similar to last year, while portfolio investment outflows are projected to decrease. This forecast reflects changes observed in economic data and market conditions during the latter part of the year. As the world’s second-largest economy, China’s current account surplus has significant implications for global financial markets. The development suggests strengthening exports and steady economic growth, although global trade dynamics and geopolitical factors could influence the surplus. Economic analysts recommend continuous monitoring. Goldman Sachs’ latest outlook indicates that China is poised to enhance its stable position in the global market, sending positive signals to investors and the global economy.
Source: binance
