Japan’s August Current Account Surplus Exceeds 4 Trillion Yen, Up 12%
TOKYO –
Japan recorded a current account surplus of 4.062 trillion yen in August, an increase of 12% from a year earlier, driven primarily by a sharp rise in income from overseas investments, even as higher crude oil prices pushed the country’s trade balance into deficit.
The current account, which measures Japan’s earnings from international trade and investment, remained in surplus for the second consecutive month.
The increase was largely attributable to higher interest and dividend income received from investments abroad, highlighting the growing contribution of overseas financial assets to Japan’s external earnings.
Meanwhile, the trade balance, calculated by subtracting imports from exports, posted a deficit of 687.7 billion yen as higher crude oil prices increased the cost of imports.
The contrasting figures show that overseas investment income continued to support Japan’s overall current account surplus despite a deficit in merchandise trade.
Source: TBS
