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China Daily Website

'Short-term concentrated capital outflows' predicted

Updated: 2013-04-03 23:42
( Xinhua)

BEIJING - Several factors will increase the volatility of capital flows across China's borders and "short-term concentrated capital outflows" cannot be ruled out, the country's foreign exchange regulator said on Wednesday.

The factors include the possibilities that the world economic recovery may not go to plan, developed economies may shift policies, the sovereign debt crisis may worsen and geopolitical conflicts may intensify, according to a statement on the State Administration of Foreign Exchange's website.

The country will maintain the basic balance of international payments this year, with the scale of surplus rising over the previous year, said the statement.

It stated that domestic and external environments are both conducive to capital inflows this year, while the country's exports and foreign direct investment will be suppressed as the world economic transformation deepens.

Imports will accelerate with the country's continued efforts to restructure its economy and boost domestic demand, the regulator predicted.

The country's balance of international payments continued improving in 2012. Its current account surplus stood at 193.1 billion U.S. dollars last year, accounting for 2.3 percent of GDP and within internationally recognized reasonable limits, according to the statement.