Japan reports record JPY3.19t current account surplus in July
Japan recorded a current account surplus of 3.19 trillion yen ($22.4 billion) in July, marking the highest figure for the month. This was driven by record foreign investment returns, supported by a weak yen, according to the Finance Ministry on Monday.
Primary income, including dividends and interest from overseas investments, surged 25.1 per cent to 4.44 trillion yen, the highest since 1985. The current account surplus, up 15.1 per cent, marked its 18th consecutive month in the black. The yen’s depreciation, averaging 158.06 per US dollar in July, boosted investment returns. The currency also dropped 9.7 per cent against the euro.
Japan posted a trade deficit of 482.7 billion yen, reversing a surplus from the previous year, as rising semiconductor exports were outweighed by increased imports of pharmaceuticals and communication devices. Imports grew 16.8 per cent to 9.90 trillion yen, while exports increased 9.7 per cent to 9.42 trillion yen.
The weak yen attracted foreign tourists, raising the travel surplus to a record 553.4 billion yen. Moreover, Foreign visitors to Japan surged 41.9 per cent to 3.29 million in July. The services trade deficit narrowed to 532.8 billion yen as the travel surplus partially offset losses in digital services.
Japan’s current account balance, a key measure of international trade, remained strong in July.
Attribution: Japan’s National Daily
Subediting: M. S. Salama
