Japan’s Account Surplus Down 54% in FY22

Jiji Press

10:47 JST, May 12, 2023

TOKYO (Jiji Press) — Japan’s current account surplus in fiscal 2022, which ended in March, dropped 54.2% from the previous year to ¥9.2256 trillion, as the country’s deficit in goods trade hit a record high mainly due to higher resources prices and the yen’s weakening, a Ministry of Finance report showed Thursday.

The country’s current account surplus slipped below ¥10 trillion for the first time since fiscal 2014.

In goods trade, exports climbed 16.3% to ¥99.6207 trillion thanks to strong demand for automobiles, gas oil and steel, while imports grew at a faster pace, rising 35.0% to ¥117.6809 trillion, led by growth in crude oil and coal. Both exports and imports logged record highs.

As a result, Japan’s goods trade deficit came to ¥18.0602 trillion.

On the primary income account, which covers Japanese companies’ dividend and interest receipts from abroad, the country’s surplus increased to a record high of ¥35.5591 trillion, reflecting brisk performances of resources traders, automakers and shipping firms.

In services trade, the country’s deficit totaled ¥5.2765 trillion.

In March alone, Japan logged a current account surplus of ¥2.2781 trillion, down 29.6% from a year before. Despite seeing its goods trade deficit grow to ¥454.4 billion, the country secured a current account surplus for the second consecutive month as a recovery in travel demand helped narrow its deficit in services trade substantially.