Japan has sustained its current account surplus for a consecutive full year, according to data released by the Ministry of Finance on Friday. The surplus in January was attributed to increases in overseas interest rates, which led to gains from foreign bond holdings.
In January, Japan's current account surplus amounted to 438.2 billion yen ($2.96 billion), surpassing economists' expectations of a deficit of 330.4 billion yen, as indicated by a Reuters poll. This followed a surplus of 744.3 billion yen in December.
A closer look at the data reveals that exports surged by 7.6% year-on-year in January, driven by robust demand for cars, car parts, and chip-making equipment. Conversely, imports saw a decline of 12.1%, primarily reflecting decreases in coal, liquefied natural gas, and communications equipment.
Moreover, Japan recorded a primary income surplus of 2.8516 trillion yen, stemming from returns on past direct investment and portfolio investment overseas.
The current account data also highlighted a notable increase in the travel account, attributed to a boost in inbound tourism, resulting in a record gain.
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