Germany and China continues to post strong current account balance surplus, while Japan and France showed weakness in their respective CAB positions. United States on the other hand, indicates a declining trend in its current account deficit. CAB surplus posted by Germany is the result of increased exports to foreign markets, increased investments in foreign shares by risk averse investors and import reduction by focusing on domestic products. Chinese current account surplus is attributed, to increased household and corporate savings, an undervalued currency, and focus of government on strong economic growth. The decrease in US CAB deficit mostly results from an increase in the surplus on income, and services and decrease in deficit on goods.Weakness in global demand, Import of energy due to nuclear shutdown and spat with China seems to adversely affect the CAB position of Japan. A falling Japanese yen is expected to give a positive push to Japanese exports in the coming days. France also indicated a more than expected rise in current deficit due to shrink in sales and an increase in import of manufacturing goods.
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