Japanese current account surplus stands at $11.4b in June

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TOKYO

Japan logged a current account surplus in June, the government said in a report on Thursday. According to the Finance Ministry, the current account surplus here stood at 1.21 trillion yen (11.40 billion U.S. dollars) in the recording month, with Japan logging a surplus for the 60th straight month.

According to the preliminary figures released by the ministry, the primary income, which reflects returns on investments made overseas, booked a surplus of 427.3 billion yen (4.02 billion US dollars).

Japan has been running a surplus in the current account, one of the widest gauges of international trade, helped by solid income from foreign investments. 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 Ministry of Finance 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. For the first half of 2019, Japan had a current account surplus of 10.47 trillion yen (98.69 billion U.S. dollars), the ministry also said on Thursday.

 

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