Japan's current account surplus grows 22.5% in 1st half

Japan's current account surplus in the first half of 2026 expanded by 22.5 percent year-over-year to 17.43 trillion yen ($110 billion), according to government data released on Monday. This marked the highest level for a first half since comparable data became available in 1985, driven by a trade balance that turned positive and increased dividend income from overseas investments.

The goods trade balance showed a surplus of 742.1 billion yen, reversing a deficit of 1.46 trillion yen from the same period a year earlier. Exports rose 12.8 percent to 59.19 trillion yen, primarily due to demand for chip-related electronics and automobiles, while imports increased 8.4 percent to 58.45 trillion yen. Primary income, reflecting earnings from overseas investments, grew by 0.3 percent to 20.49 trillion yen.

However, the services trade deficit expanded by 15.4 percent to 1.82 trillion yen, mainly due to a decline in the travel surplus, which fell to 3.13 trillion yen. The travel balance surplus indicates that Japanese residents' spending abroad was larger than what Japanese visitors spent in other countries. In June alone, the country recorded a current account deficit of 92.3 billion yen, marking the first deficit in 17 months, primarily due to a smaller primary income surplus and a trade deficit.

Primary income declined by 73.7 percent to 380.1 billion yen, with dividend payments by Japanese companies to overseas investors increasing.