TOKYO: Japan posted a surplus in its current account for the 10th consecutive month in April on the back of an improved trade balance and strong income from overseas investments.
The surplus in the current account, the broadest measure of Japan’s trade with the rest of the world, was Y1.326 trillion in April before seasonal adjustment, finance ministry data showed Monday. The surplus rose six-fold from a year earlier and compared with a Y1.696 trillion surplus expected by economists surveyed by The Wall Street Journal and the Nikkei.
Japan’s monthly current account surpluses have again surged to over one trillion in recent months as a fall in fuel prices has cut the country’s import bill, helping shrink the trade deficit. Japan posted a Y146.2 billion trade deficit in April, down 82% on year.
The bulk of the surpluses have been fueled by greater returns on Japanese investments overseas. A slide in the yen against other major currencies has helped boost the value of those returns when calculated in yen. The surplus in Japan’s primary income account in April was Y2.197 trillion, up 19% on year. That was the third largest primary income surplus for any month on record.
