China sees current account deficit in Q1


File photo: VCG

BEIJING, May 8 (Xinhua) -- China saw a current account deficit in the first quarter this year due to mounting pressure from the COVID-19 epidemic.

The deficit in the current account stood at 29.7 billion U.S. dollars in the first three months, data from the State Administration of Foreign Exchange (SAFE) showed Friday.

Goods trade posted a surplus of 26.4 billion dollars, while services trade saw a deficit of 47 billion dollars, narrowing by 26 percent year on year, mainly driven by anemic demand in the travel and transport sectors due to the epidemic.

During the period, the net inflow of direct investment came in at 14.9 billion dollars.

China's international balance of payments maintained a basic equilibrium last quarter, with stable cross-border capital flows, noted Wang Chunying, SAFE spokeswoman and chief economist.

As business and production activities are gradually getting back on track, the balance of payments will stay stable in the future, said Wang, citing the country's sound economic fundamentals and opening-up moves.