Japan logs biggest current account surplus for October

December 8, 2017

Tokyo- Japan's current account surplus in October rose 40.7 percent from a year before to 2,176.4 billion yen, the highest level for the month, Ministry of Finance data showed Friday.

The country's current account balance was in the black for the 40th straight month, according to the preliminary balance of payments data. The October figure proved better than the median forecast of 1,715.1 billion yen in surplus among 15 economic research institutes surveyed by Jiji Press.

The growth chiefly reflected an increase in companies' dividend receipts from overseas subsidiaries on the back of the yen's fall and a far smaller services trade deficit traced to a rise in the number of foreign visitors to Japan, ministry officials said.

The surplus on the primary income account expanded 31.6 percent to 1,940.5 billion yen, thanks to growth in interest income from foreign bonds amid higher US interest rates as well as to the increased dividend income.

r> In services trade, Japan posted a deficit of 33.4 billion yen, almost a 10th of the year-before deficit of 326.9 billion yen. The dramatic fall came as the travel account surplus amounted to 160.1 billion yen, a record high for any month, and payments of royalties to overseas decreased.

In goods trade, the nation's surplus totaled 430.2 billion yen, down 24.0 percent.

Imports were up 18.5 percent at 6,143.3 billion yen on the back of surges in crude oil and coal prices. Exports grew 14.3 percent to 6,573.5 billion yen, supported by brisk shipments of automobiles and chipmaking equipment.

As a result, Japan posted a goods and services trade surplus of 396.7 billion yen, up 66.0 percent. Jiji Press