What will be the likely effect on its current account

Reference no: EM131022780

Tim Condon, an economist at the European bank ING, was quoted in the Wall Street Journal in 2011 as predicting that "China's current account or saving-investment surplus [will be in] the 1-2% of GDP range." Is he correct in referring to China's current account as being the same as its saving-investment surplus? Briefly explain. If the Chinese government runs a large budget deficit, what will be the likely effect on its current account?

Reference no: EM131022780

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