Japan’s Current Account Surplus Extends for 13th Consecutive Month
Japan’s Current Account Surplus Expands in February
Japan’s current account surplus continued its streak for a 13th consecutive month in February, with Ministry of Finance data revealing a surplus of 2.64 trillion yen ($17.41 billion). While this figure fell short of the 3.11 trillion yen forecast in a Reuters poll, it marked a significant increase from the previous month’s surplus of 457 billion yen and was the highest since October last year.
Trade Deficit Narrows, Boosting Surplus
The narrowing of the trade deficit played a crucial role in bolstering Japan’s current account surplus. Exports saw a 5.5% year-on-year increase in February, driven by demand for cars, car parts, and plastics. On the other hand, imports grew by 1.4%, marking the first increase in 11 months, fueled by stronger demand for clothing, computer equipment, and petroleum products.
Primary Income Surplus Soars in Japan
Japan’s primary income surplus reached 3.3069 trillion yen, reflecting gains from past direct investment and portfolio investment overseas. This substantial surplus further contributed to the country’s overall economic stability and growth.
Positive Outlook for Japan’s Economy
With consecutive months of current account surpluses and a positive trade balance, Japan’s economy is showing signs of resilience and strength. Despite falling slightly below expectations, the surplus in February demonstrates the country’s ability to navigate global economic challenges and maintain a healthy financial position.
($1 = 151.6600 yen)
