While the net external financial surplus, which offsets the current account deficit, has remained broadly unchanged at around 3% of GDP over the past few years, the separate financial inflows and outflows have recently slumped. For the first time since the height of the financial crisis in late 2008 and early 2009, claims on and liabilities to foreigners both fell outright in the first half of this year. In total, external financial inflows and outflows have fallen from around 12% of GDP in late 2010 to minus 4% in the first half of this year.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services