Japan logs current account surplus in July on services balance improvement
TOKYO (Kyodo) -- Japan posted a current account surplus of 2.99 trillion yen ($19 billion) in July, returning to the black for the first time in two m
Japan recorded a current account surplus of 2.99 trillion yen, or $19 billion, in July, marking its first surplus in two months, according to the Finance Ministry. This surplus represented a 15.6% increase compared to the previous year, driven by a better travel balance as tourism remained robust, and higher dividend income from abroad, a ministry official explained.
The goods trade deficit, however, widened to 399.9 billion yen, with a surge of 212.2 billion yen. Exports rose by 24.1% to 11.26 trillion yen, supported by strong sales of automobiles and semiconductor-related goods, while imports increased by 25.9% to 11.66 trillion yen, driven by rising crude oil prices amid ongoing Middle East turmoil.
The primary income, indicating earnings from overseas investments, grew by 5.8% to 4.29 trillion yen. The services deficit, encompassing travel and freight transport, narrowed to 512.9 billion yen from 771.1 billion as the travel balance improved. Despite a significant drop in Chinese tourist arrivals due to Prime Minister Sanae Takaichi's comments about potential intervention in Taiwan, foreign visitor numbers to Japan rose marginally by 0.1% to 3.44 million in July.
A 1.2% decline in Japanese travelers abroad also contributed to the travel balance improvement. The current account balance is a key indicator of international trade.
Written by urgent.news from The Mainichi's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
