Japan’s Current Account Surplus Hits Record High in FY 2025

Tokyo, May 13 (Jiji Press)–Japan’s current account surplus hit a record high for the third consecutive year in fiscal 2025 partly because the trade balance swung back to the black, preliminary data from the Finance Ministry showed Wednesday. The surplus in the year that ended in March stood at 34,521.8 billion yen, up 15.0 pct from the preceding year, according to the balance of payments data. Japan posted a goods trade surplus of 1,363.1 billion yen, the first black ink in five years, after a fiscal 2024 deficit of 3,030.9 billion yen. Exports rose 3.3 pct to 111,345.1 billion yen, driven by increased shipments of electronic components including semiconductors. Imports fell 0.8 pct to 109,982 billion yen due to declines in prices for energy such as crude oil and coal. In services trade, including transportation and travel, Japan logged a deficit of 3,877.7 billion yen. The red ink, larger than the deficit of 3,136.5 billion yen in fiscal 2024, reflected an increase in research and development service fee payments by companies although the travel balance showed a surplus of 6,574.5 billion yen thanks to an increase in inbound tourists. The surplus in the primary income account, which includes Japanese companies’ dividend and interest receipts from abroad, climbed 2.1 pct to a record 42,280.9 billion yen. In March alone, the country’s current account surplus grew 29.1 pct year on year to 4,681.5 billion yen, marking the 14th straight month in the black and the highest on record for that month. The impact of the ongoing Middle East crisis, which started in late February, is believed to have been limited. END [Copyright The Jiji Press, Ltd.]