Business / Economy

China overtakes Germany in net capital exports in 2015

(Xinhua) Updated: 2016-02-23 14:24

MUNICH, Germany -- China overtook Germany in net capital exports in 2015, German think tank Ifo institute reported here on Monday.

According to Ifo, China looks set to become the new number one with net capital exports of $293 billion from an international perspective. Germany will follow suit with exports of around $280 billion, meaning that German capital exports look set to fall below those of China for the first time since May 2010.

The report noted that Germany's net capital exports in fact hit new record in 2015, which rose to 8.3 percent of its annual economic output in the year, following 7.3 percent in 2014.

According to the European Union, a level of 6 percent 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 added.

In addition, considering the low oil price and the weak euro, Ifo predicted that Germany's current account surplus will continue to rise in 2016 and that it is once again very likely to be higher than 8 percent of its annual economic output.

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