Japan’s current account surplus expanded 41.8 percent from a year earlier to 2.85 trillion yen ($18 billion) in May 2024, the Finance Ministry said on Monday.
Record primary income surplus
According to Kyodo News, primary income came to a 4.21 trillion yen surplus, the largest since comparable data became available in 1985. It marked a 13 percent year-on-year increase.
The total surplus in the current account balance, one of the widest gauges of international trade, was the largest for the month of May.
Trade deficit amid weaker yen
Japan had a 1.11 trillion yen trade deficit as the weaker yen inflated the cost of imports for the resource-scarce nation, offsetting continued growth in exports. Imports grew 9.3 percent to 9.24 trillion yen, while exports rose 12.1 percent to 8.13 trillion yen.
Read more: Japan faces shortfall of nearly one million foreign workers by 2040 to meet growth goals
Revised economic data
Last week, Japan’s government revealed that the economy shrank more than initially reported in the first quarter of 2024. Japan’s real gross domestic product (GDP) contracted 2.9 percent annually in January-March, down from an earlier estimate of a 1.8 percent contraction, the most recent data showed.
The government also revised Japan’s real GDP for the October-December period of 2023 down to 0.1 percent growth annually versus the previous 0.4 percent increase. Meanwhile, the government revised the country’s GDP for the July-September period of 2023 down to a 4.0 percent annual decline from the previous 3.7 percent drop.
Robust exports surge in May
Japan’s exports saw a robust 13.5 percent surge in May 2024, exceeding expectations and driven by a weaker yen as well as strong demand from the U.S. and Asia.
Narrowing trade deficit
Data from the Finance Ministry showed last month that the country’s trade deficit narrowed to 1.22 trillion yen ($7.7 billion) in May 2024, down nearly 12 percent from a year earlier.
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