Japan logs 17 bln USD current account surplus in October

Source: Xinhua | 2019-12-10

Japan posted a current account surplus of 1.82 trillion yen (17 billion U.S. dollars) in October from a year earlier, the government said in a report on Monday.

According to the Finance Ministry, the latest reading marks a rise of 38.0 percent from a year earlier and the 64th successive month the current account has been in surplus, owing to imports falling faster than exports amid a slump in prices for crude oil.

The ministry also said in its preliminary report that the country had a goods trade surplus of 254.0 billion yen (2.34 billion U.S. dollars), compared to a deficit of 320.7 billion yen (2.95 billion U.S. dollars) from the previous year.

Exports fell 7.9 percent to 6.54 trillion yen (60.30 billion U.S. dollars) in the recording period, the ministry said, owing to a drop in demand for vehicles and iron products, while imports tumbled 15.3 percent to 6.29 trillion yen (58 billion U.S. dollars), as prices for crude oil retreated and demand for oil and liquefied natural gas waned.

Japan's primary income, which reflects returns on investments made overseas, declined 13.7 percent to 1.78 trillion yen (16.41 billion U.S. dollars) from a year earlier, as overseas dividends marked a drop in the recording period, the ministry also said.

Japan's current account surplus is one of the broadest measure of its trade with the rest of the world.

The data is keenly eyed by the Bank of Japan (BOJ) and the Finance Ministry ahead of new potential policy changes or monetary easing or tapering measures.

In Japan, the current account surplus increases the nation's net foreign assets by the corresponding amount, and a current account deficit does the reverse.

Both the Japanese government and private payments are included in the calculation and it is called the current account because goods and services are generally consumed in the current period.