Japan Posts 2.9-T.-Yen Current Account Surplus in July

Tokyo, Sept. 8 (Jiji Press)–Japan logged a current account surplus of 2,988.9 billion yen for July, the first black figure in two months, the Finance Ministry said Tuesday. The July surplus expanded from 2,586.3 billion yen a year earlier, mainly thanks to an increase in dividends from overseas subsidiaries, according to the ministry’s preliminary balance of payment report. Meanwhile, the country’s trade deficit widened to 399.9 billion yen from 187.7 billion yen. Exports increased 24.1 pct to 11,256.1 billion yen, reflecting strong exports of vehicles and semiconductors. However, imports jumped 25.9 pct to 11,656 billion yen, due to a surge in oil imports from the United States, as well as a rise in semiconductor imports from other Asian economies. In services trade, Japan incurred a deficit of 512.9 billion yen, shrinking from 771.1 billion yen, as the number of foreign tourists rose while that of Japanese people traveling abroad decreased. In the primary income account, which includes cross-border dividend and interest payments, Japan’s surplus rose 5.8 pct to 4,289.6 billion yen. Dividends from overseas subsidiaries increased due to strong earnings and a weaker yen. END [Copyright The Jiji Press, Ltd.]