Japan's Current Account Reaches Largest Surplus Since 1985
(MENAFN) Japan's current account reached its highest surplus since 1985 in fiscal year 2024, hitting a remarkable 30.38 trillion yen (approximately $208 billion), according to data released by the Ministry of Finance on Monday.
This significant surplus was primarily driven by substantial returns from overseas investments, which generated a primary income surplus of 41.71 trillion yen (about $286 billion). These increased earnings included dividends and interest.
The depreciation of the yen played a key role in boosting the value of these foreign investment returns. Throughout fiscal 2024, the average exchange rate was 152.48 yen to the U.S. dollar, marking a 5.5 percent decline in the yen's value compared to fiscal 2023.
Despite the overall surplus, Japan's trade balance showed a deficit of 4.05 trillion yen (roughly $27.7 billion), a 9.8 percent increase from the previous year.
Breaking down the trade figures, exports saw a 4.1 percent rise to 106.24 trillion yen (around $727 billion), supported by strong demand for semiconductor manufacturing equipment in Asia and automobiles in the United States.
Imports also increased by 4.3 percent, reaching 110.287 trillion yen (approximately $755 billion), fueled by demand for items like computers and smartphones.
The services sector recorded a deficit of 2.58 trillion yen (about $17.7 billion). However, a record 38.85 million inbound tourists visited Japan in fiscal 2024, leading to a travel surplus of 6.69 trillion yen (approximately $45.8 billion), a significant 58.3 percent surge from the previous year, the data indicated.
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