Japan Logs Record $103 Billion Current Account Surplus For H2

Japan posted a record 15.82 trillion yen ($103 billion) current account surplus in the first half of fiscal 2024, driven by higher returns on foreign investments amid a weaker yen, according to recent government data released, as reported by Kyodo News.

The weaker yen, though beneficial for exporters, has been problematic for resource-poor Japan.

For the April-September period, the surplus in the current account balance—one of the broadest measures of international trade—increased 12.3% from the previous year, the Finance Ministry reported.

Of this total, primary income, which reflects Japan’s earnings from overseas investments, reached a surplus of 22.12 trillion yen, up 13.3%, boosted by rising stock dividends and bond yields abroad.

Both the current account and primary income surpluses were the largest for any fiscal half-year period since comparable data began in 1985. Japan’s goods trade deficit widened to 2.41 trillion yen, up 86.8%, as exports increased by 5% to 52.22 trillion yen while imports rose by 7.1% to 54.64 trillion yen.

The weaker yen, though beneficial for exporters, has been problematic for resource-poor Japan, as it raises import costs for essentials like energy and food, exacerbating the country’s cost-of-living challenges, as also noted by Mainichi Japan.