Japan Records Current Account Surplus Of 438 Billion Yen In January 2024

Japan's Finance Ministry announced that the country logged a current account surplus of 438.2 billion yen ($2.9 billion) in January 2024, as reported by Kyodo News.

The figures marked a significant turnaround from January 2023.

This marked a significant turnaround from January 2023, when Japan recorded a massive deficit of 2.01 trillion yen. The improvement was attributed to record foreign investment returns and a sharp decline in imports.

The trade deficit was nearly halved to 1.44 trillion yen, with inbound tourism contributing to a record travel surplus of 415.9 billion yen.

Primary income, which reflects returns on overseas investments, also saw a surplus of 2.85 trillion yen, driven by rising overseas bond yields as major central banks tightened monetary policy to combat inflation.

The current account balance serves as a key indicator of international trade, with comparable data available since 1985.

Japan, being resource-poor and sensitive to fluctuations in energy and raw material prices, faced significant trade deficits in the previous year due to a weak yen. However, imports dropped by 12.1% to 8.78 trillion yen, primarily due to lower coal and liquefied natural gas imports.

Meanwhile, exports rose by 7.6% to 7.34 trillion yen, supported by increased shipments of cars and equipment for semiconductor manufacturing, buoyed by the relative resilience of the US economy.

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