WASHINGTON, Aug. 4 (Xinhua) -- Global current account surpluses and deficits narrowed in 2019, and the COVID-19 pandemic could narrow the imbalances further in 2020, the International Monetary Fund (IMF) said in its annual External Sector Report released on Tuesday.
In 2019, the global current account balance, the absolute sum of all surpluses and deficits, declined by 0.2 percentage point of world gross domestic product (GDP) to 2.9 percent of world GDP, according to the report.
Larger-than-warranted current account balances were mostly in the euro area, driven by Germany and the Netherlands, while lower-than-warranted current account balances mainly existed among Britain, Canada, and the United States, the report noted.
China's assessed external position in 2019 remained, as in 2018, "broadly in line with fundamentals and desirable policies," said the multilateral lender.
At a global level, the latest IMF staff forecasts for 2020 imply "a modest narrowing" in current account surpluses and deficits by some 0.3 percent of world GDP, "although subject to high uncertainty," according to the report.