Japan’s current account surplus soars to record high of $162.56 million in fiscal 2023

Japan’s current account surplus in fiscal 2023 reached a record high of 25,339 billion yen ($162.56 million), marking a significant increase of 2.8 times compared to the previous year. 

According to a preliminary report by the country’s Finance Ministry, this surge can largely be attributed to a decrease in the trade deficit.

In the year ending March 2024, Japan’s goods trade deficit decreased to 3,572.5 billion yen ($22.94 million), down from the previous year’s 17,786.9 billion yen ($113.83 million).

The Finance Ministry’s report stated that exports increased by 2.1 percent to 101,866.6 billion yen, while imports declined by 10.3 percent to 105,439.1 billion yen.

Additionally, the surplus in the primary income balance, which reflects dividend and interest flows, experienced a slight increase of 0.6 percent, amounting to 35,531.2 billion yen.

In March alone, Japan’s current account surplus rose by 44 percent compared to the previous year, reaching 3,398.8 billion yen.

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Japan’s industrial production surged in March, surpassing market expectations, as automakers resumed production following safety concerns.

Data from Japan’s Ministry of Economy, Trade and Industry (METI) revealed a 3.8 percent increase in industrial production compared to the previous month, exceeding the median market forecast of 3.5 percent.

The resurgence in Japan’s industrial production was due to a notable 9.6 percent rise in motor vehicle production, with notable contributions from regular passenger cars and trucks.

According to the ministry, the manufacturing of production machinery, which includes semiconductor production equipment, saw an 11.6 percent increase. Meanwhile, production of electronic parts and devices increased by 9.2 percent.

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