FXStreet (Guatemala) – Yesterday Japan reported a November current account surplus that was more than a quarter larger than expected.
Key Quotes:
“The current account surplus was not driven by the trade balance. In fact on a balance of payments basis, the trade deficit was 70% larger than expected at JPY271.bln. Instead, the driver of the JPY1.143 trillion current account surplus was the investment income surplus (JPY1.54 trillion) which is the largest ever recorded in November. This is a function of income generated Japanese companies foreign direct investment (royalties, licensing fees, etc.) and coupons and dividends from overseas portfolio investment.
Japan also recorded an unusual surplus on service trade. The JPY61.5 bln service surplus contrasts with a 12-month average deficit of JPY145.8 bln deficit. This is reflecting the surge in tourism, which is treated as an export of services in balance of payment calculations. The number of tourists visiting Japan last year increased by 50% over 2014. “
(Market News Provided by FXstreet)