Japan's trade balance swung into surplus, with the current account Posting a record surplus in September
Japan posted its highest current account surplus in 18 months in September as the trade balance swung to a surplus and big gains from overseas investment boosted the balance of payments, the JPN finance ministry said on Thursday.
The data showed a current account surplus of 2.72 trillion yen ($18.03 billion) in September, slightly below market forecasts for a surplus of 3.0 trillion yen. It was the eighth consecutive month that Japan recorded a current account surplus.
Japan's current account recently highlighted the pain of high energy costs and a weak yen. The Japanese economy relies heavily on imports of fuel and raw materials.
Japan's status as an export powerhouse has also weakened in recent years, in part because companies have shifted production overseas and increasingly relied on overseas investment as a pillar of the country's balance of payments.
A breakdown of the current account shows that Japan's primary income account surplus on direct investment and portfolio investment was about 3 trillion yen in September, exceeding the trade surplus of 341 billion yen.
In the first half of the fiscal year, Japan's current account surplus reached a record Y12.7tn and its primary income account surplus was about Y18.4tn, also a record, exceeding the trade deficit of Y1.4tn.
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