Japan Posts Another Current Account Surplus
Japan posted a current account surplus for the 20th month running in February helped by lowering costs for energy imports, rising foreign investments and an increase in tourism, government data showed Friday.
According to the Finance Ministry, the balance stood at JPY 2.43-T (US$22.4-B) in the recording period, marking the biggest surplus since March 2015 and coming in higher than median market forecasts.
The value of exports climbed 5.3% on month in February to JPY 5.64-T, while imports retreated 9.5% on month to JPY 5.21-T, the ministry’s data showed.
In the preliminary report, the ministry also said that goods trade registered a surplus of JPY 425.2-B, although economists warned that a recent spike in the Japanese Yen Vs the USD threatens to impact future trade data as exporter profits could be eroded.
They also noted that a rising yen could dampen recent enthusiasm from oversees visitors traveling to Japan, as the purchasing power of tourists visiting here is augmented when the Japanese Yen is lower.
Japan’s current account balance is one of the major gauges of the nature of Japan’s foreign trade and when the nation’s account is in surplus it increases Japan’s net foreign assets by the corresponding amount, and a current account deficit does the reverse.
On an unadjusted basis, the surplus expanded to JPY 1.73-T in February, also marking the highest level since March last year.
Both government and private payments are included in the calculation.
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Paul Ebeling
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