The global economy has converged, but the trade deficit is not as big as it once was.
That is the conclusion of the Global Trade Forecast report, which was released by the International Monetary Fund on Wednesday.
China’s trade deficit with the world fell to $1.6 trillion in 2017 from $1,700 billion in 2016.
China is the world’s largest economy, with annual growth of 6.4% in 2017.
But the report noted that the trade gap has fallen in recent years due to lower demand for imports and to rising investment in goods and services.
The global trade deficit was $2.7 trillion in 2013 and $2 trillion in 2012, but was down to $2,200 billion in 2015 and $1 trillion in 2016, the report said.
“This trade deficit has shrunk substantially since the start of the economic crisis in 2008 and has since increased sharply.
It has also remained within a narrow range of $2-3 trillion annually since then, and is now only $1-1.5 trillion, according to IMF data,” the report stated.
China and other countries that are trying to recover from the global financial crisis have become increasingly reliant on imported goods and financial services to meet their economic needs.
China, for example, imports a large amount of its food, clothing and other goods from India and other Asian countries.
The IMF said China imports $1 billion a day in raw materials, such as copper and aluminum, from India, the world top importer of the metals, while India imports $8 billion a week in raw material.
The United States imports $2 billion in copper from China each day.
The report said that the global trade gap with the rest of the world rose to $5.5 billion in 2020, down from $10.2 billion a year earlier.
“Global trade has become more competitive and is therefore in a position to reduce its trade deficit,” the IMF report said, referring to the extent of the trade deficits.
The trade gap will be lower in the coming years because of the slowing growth in the United States and other emerging markets, the IMF said.
China exported $2-$3 trillion more to the world in 2017 than it imported, the U.S. Census Bureau reported last month.
The U.N. economic growth data for the year through June 2018 showed that the United Nations recorded its first increase in global economic growth in nearly five years, to 2.3% in June from 1.7% in May.
“In 2018, China will be able to export $1 to $3 trillion in goods to the rest [of the world] and $4 trillion to the developing world,” the World Bank’s director for Asia and Pacific, Richard Trumka, said in a statement.
Trumk said China is likely to be the world leader in the next 10 years in terms of the amount of exports and imports of goods and in terms for the volume of trade.
China exports more to other countries than to the United Kingdom, France, Germany and Canada, according the IMF.