Hi may I please ask a moment of your time.
I am asked to recreate the chart titled Capital Flows* in this article for the countries listed in that chart on a quarterly basis from 2012 to 2014:
This task would be fairly straightforward if I gathered the capital and financial account balance. According to this article the capital flows for the fourth quarter were a deficit of $91.2 billion and in the third quarter a deficit of $9 billion, which would equal a deficit $100.2 billion in the second half of 2014.
However, that figure is markedly different from a deficit 0f $270 billion in the second half of 2014 from the Financial times article I am suppose to create a chart.
Do you have any insight how they are coming up with that figure? The asterisk denotes current account deficit plus change in FX reserves.
I am rather confused because I thought capital flows is a separate concept from the current account and that they mirror each other, if one goes up the other goes down.
China reported a current account surplus of $61.1 billion in the fourth quarter last year and a current account surplus $72.2 billion posted in the third quarter, which would equal a surplus of $133.3 billion.
If Capital Flows includes the current account balance, then: $133.3 billion-$100.2 billion= 33.1 billion.
This would put the figure even further away from the deficit of $270 in the financial times articles.
Your help greatly appreciated.
Thank you for your query. I do apologize for the delay. You may want to track down ING's research department and find out how they came up with the figures. This article is a bit confusing and simple National Accounting and Balance of Payments would suffice to understand the data. The Capital and Current Accounts are two different items in the Balance of Payments. Am not sure what your question is. Please rephrase and let me know.