Surplus
in sentence
1438 examples of Surplus in a sentence
The combination of economic recovery and lower interest rates would produce a virtuous dynamic in which falling interest rates and a rising budget
surplus
are mutually reinforcing.
Germany now has a current-account
surplus
of about $215 billion a year, while the rest of the eurozone is running a current-account deficit of about $140 billion.
In 2012, China’s current leaders recognized that the country’s “demographic dividend” had run its course: the Chinese economy was reaching its “Lewis turning point,” the stage at which its
surplus
labor supply would be exhausted, and wages would start to rise.
The German operations naturally generate a
surplus
of funds (given that savings in Germany far exceed investment on average).
The End of China’s SurplusCAMBRIDGE – China’s current-account
surplus
– the combination of its trade
surplus
and its net income from foreign investments – is the largest in the world.
With a trade
surplus
of $190 billion and the income from its nearly $3 trillion portfolio of foreign assets, China’s external
surplus
stands at $316 billion, or 6.1% of annual GDP.
Because the current-account
surplus
is denominated in foreign currencies, China must use these funds to invest abroad, primarily by purchasing government bonds issued by the United States and European countries.
It is possible that, before the end of the decade, China’s current-account
surplus
will move into deficit, as the country imports more than it exports and spends its foreign-investment income on imports rather than on foreign securities.
After all, the policies that China will implement in the next few years target the country’s enormous saving rate – the cause of its large current-account
surplus.
So any country that reduces its saving without cutting its investment will see its current-account
surplus
decline.
And with that lower saving rate will come a smaller current-account
surplus.
Since China’s current-account
surplus
is now 6% of its GDP, if the saving rate declines from the current 45% to less than 39% – still higher than any other country – the
surplus
will become a deficit.
This would cause a shift from exports to production for the domestic market, thereby shrinking the trade surplus, in addition to curbing inflation.
China’s trade
surplus
and the renminbi’s exchange rate were high on the list of topics that President Hu Jintao and US President Barack Obama discussed when Hu visited Washington earlier this month.
The Americans are eager for China to reduce its
surplus
and allow its currency to appreciate more rapidly.
But they should be careful what they wish for, because a lower
surplus
and a stronger renminbi imply a day when China is no longer a net buyer of US government bonds.
Italy, for example, would save up to 4% of its GDP; its budget would move into surplus; and fiscal stimulus would replace austerity.
China’s government, too, was generally comfortable with the arrangement, though some Chinese economists have long warned that running a trade
surplus
with the US was not in China’s long-term interests, for a few key reasons.
Yet when China began running a continuous trade surplus, its per capita income was just above $400.
Instead, by continuing to run a current-account surplus, China has established an irrational international investment position: despite having accumulated some $2 trillion in net foreign assets, it has been running an investment-income deficit for more than a decade.
If China must reduce its trade
surplus
with the US, it must also reduce its trade deficits with the East Asian economies.
America’s net exports will have to increase, meaning that the net exports of China, Japan, and other
surplus
countries will consequently decrease.
China’s trade
surplus
might shrink by half of that amount (with cuts in trade surpluses also spread over other global regions), meaning a shift in Chinese GNP toward internal demand and away from net exports equal to between 5% and 10% of China’s GNP.
Public finances showed a 2.8%-of-GDP
surplus
in 2008, compared to a 1.4%-of-GDP deficit in 2000-2005.
But the flip side of the trade
surplus
is the capital outflow.
With oil exports accounting for nearly 90% of government revenue, the pressure on Saudi finances has been intense; the fiscal balance has swung from a small
surplus
in 2013 to a deficit of more than 21% of GDP in 2015, according to projections by the International Monetary Fund.
Japan’s past predilection toward saving has long implied a large trade and current-account surplus, but now these surpluses are starting to swing the other way.
So its trade
surplus
continues to soar at the expense of other countries.
But the ongoing weakness of the euro – fed by such policies – is fueling growth in the eurozone’s current-account
surplus.
Indeed, as the euro weakens, the periphery countries’ external accounts have swung from deficit to balance and, increasingly, to
surplus.
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