China revises down Q1 current account surplus

China's current account surplus plunged 21 percent year-on-year in the first quarter, revised government figures showed Monday -- a much larger fall than previously announced. The current account surplus -- the broadest measure of trade with the world -- reached $28.8 billion in the first three months of the year, the State Administration of Foreign Exchange said in a statement. That was $1 billion less than the figure published in May, meaning the fall from the same period in 2010 widened to 21 percent from 18 percent. No explanation was offered for the change. The net inflow of direct investment into China, the world's second-largest economy, totalled $44.8 billion in the first quarter compared with the $42.6 billion announced in May. In 2010, China's current account surplus surged 17 percent year on year to $305.4 billion, according to the revised data, as US and European demand for Chinese exports recovered following the global financial crisis. While rising demand for Chinese goods boosts growth, it also means the central bank has to work harder to control the value of the yuan and to stem the flood of liquidity, which has been fuelling inflation.