Japan’s current account surplus plunges to record low

Tokyo, October 11 Japan’s current account surplus plunged 96.1% in August from a year earlier to 58.9 billion yen ($404 million), a record high, it said on Tuesday. the government in a report.

According to the Ministry of Finance, the record monthly low recorded for August was the result of a widening trade deficit, as the persistent weakness of the yen further inflated import costs, reports the Xinhua news agency.

The ministry said in its preliminary report that the country’s merchandise trade deficit stood at 2.49 trillion yen with imports totaling 10.55 trillion yen and exports reaching 8.06 trillion yen during the past year. the registration period.

Japan’s primary income, which reflects returns on investments made overseas, recorded a surplus of 3.33 trillion yen, the largest since comparable data became available, the government data also showed.

This is due to the depreciation of the yen which has boosted the value of foreign investment returns from Japanese companies, the ministry said.

Japan’s travel balance, meanwhile, fell to a deficit of 7.2 trillion yen from a surplus of 15.5 trillion yen a year earlier, the ministry said, leading to a trade deficit. services of 615.9 billion yen during the record period.

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

The data is being closely watched by the Bank of Japan and the Ministry of Finance ahead of potential further policy changes or monetary easing or reduction measures.

In Japan, a current account surplus increases the country’s net foreign assets by the corresponding amount, and a current account deficit does the opposite.

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.

Disclaimer: This post was auto-published from an agency feed without any text editing and has not been reviewed by an editor

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