China's current account balance falls 35% in 2009

China's current account balance dropped 35 percent in 2009 to $284.1 billion, preliminary data released by the State Administration of Foreign Exchange (SAFE) showed Friday.

According to SAFE, China recorded a goods trade surplus of $249.3 billion, and a yearly deficit of $28.7 billion on the trade in services.

In 2009, the country also posted surplus in income and current transfers at $28.7 billion and $34.8 billion, respectively.

The current account involves all transactions other than those in financial and capital items. The major classifications are goods and services, income and current transfers.
The foreign-exchange regulator also said China's capital and financial account surplus reached $109.1 billion in 2009, with a net direct investment of $36.5 billion. The figures take account of errors and omissions.

SAFE said it would issue the final balance of payment report for 2009 in April this year.

It was the first time since 2001 that China recorded a drop in its annual current account balance.

China has the world's largest foreign reserves, which totaled $2.4 trillion by the end of 2009, an increase of $453.1 billion from a year earlier, according to SAFE.