Econintersect: Japan has reported a surprise current account balance of +¥587.3 trillion ($6 billion). This was the fifth highest surplus in the past 18 months and the largest since March of this year.
Last month Japan reported a faltering of the growth of exports and the sixteenth consecutive month with a negative balance of trade, raising concerns that the current account balance growth could also be slowing significantly. That concern is alleviated, at least temporarily.
The current account balance has the balance of trade as its largest component, but also includes net factor income (such as interest and dividends) and net transfer payments (such as foreign aid and net foreign direct investment).
Sources:
- Japan Current Account Surplus at 5-Month High in Abe Boost (Andy Sharp and Toru Fujioka, Bloomberg, 10 November 2013)
- Japan Current Account (Trading Economics, 11 November 2013)
- Japan: Export Growth Rate is Faltering (GEI News, 21 October 2013)