Japan’s Current Account Surplus Expands on Export Surge
Japan’s current account surplus expanded more than projected in January as exports swelled considerably, boosting growth in the world’s second-largest economy. The current account surplus grew 49.8 percent from a year earlier in January, the Finance Ministry said Monday, staging an impressive comeback from the prior month. The surplus shot up to 1.19 trillion yen ($10.1 billion) against expected 1.04 trillion yen.
The recent surge in export also marked the fact that Japan’s economy recorded the fastest pace in three years in the last quarter. Factors such as rising overseas demand helped companies to encourage spending on factories and machinery. The experts are of the view that the current account surplus may keep expanding as exporters such like Toyota Motor Corp. ship more goods and as cheaper oil would help limiting the nation’s import bill.
As per figures released by Cabinet Office Japan’s economy grew at an annual 5.5 percent rate in the final quarter. The government earlier anticipated a 4.8 percent growth in the last quarter. Exports shot up significantly by 18.2 per cent to 5.63 trillion yen, and imports marked the second highest on record rising 10.8 per cent to 5.52 trillion yen.
However, Surplus in goods and services trade reported a deficit of 78.5 billion yen, against a deficit of 297.6 billion yen in the corresponding period last year. The current account balance, which is the distinctive yardstick of trade, indicates the difference between a nation’s income from foreign sources and foreign obligations payable, excluding net capital investment.
Posted by: Balendu Source