Japan Posts Record High Current Account Surplus of ¥30 Trillion

Preliminary balance of payments statistics for fiscal 2024 released on May 12 by Japan’s Ministry of Finance show that Japan posted a surplus of ¥30.4 trillion, the largest of its kind since comparable data first became available in fiscal 1985. This current account balance reflects not only Japan’s overseas trade in goods and services but also its revenue from foreign investments.

For its balance of trade, calculated as the difference between imports and exports, Japan posted a deficit of ¥4 trillion, marking the fourth consecutive annual deficit. While exports of automobiles and equipment for manufacturing semiconductors rose, there were also increases in imports of personal computers and smartphones.

Meanwhile, Japan’s primary income balance, which reflects overseas revenue from interest and dividend payments, rose by 11.7% over the previous year, for a surplus of ¥41.7 trillion. This result, boosted in part by the weaker yen, marks the fourth consecutive record annual surplus.

The balance on services was a deficit of ¥2.6 trillion in fiscal 2024, while the digital sector, which includes internet advertising, had a record deficit of ¥7.0 trillion. In contrast, the travel industry posted a record trade surplus of ¥6.7 trillion, driven by a significant increase in foreign tourists to Japan.

(Translated from Japanese. Banner photo © Pixta.)