Japan’s current account surplus resurfaced in February from a second-month deficit last month, offering some relief to policymakers amid deteriorating fundamentals.
Rising fuel costs and weak yen have widened Japan’s trade deficit in recent months, offsetting higher investment returns and pushing the country’s current account deficit into deficit.
The third largest economy in the world showed a surplus of 1.6483 trillion. Yen ($ 13.28 billion) in February, according to the Treasury Department, against average estimates for a surplus of 1.4368 trillion. Yen.
In January, it had a deficit of 1.1887 trillion. Yen, the second largest since 1985, when comparable data began.
The trade deficit shrank to 176.8 billion yen in February from 1.6043 trillion. Yen in January.
The primary income surplus widened to 2.2745 trillion. Yen against 1.2813 trillion. Yen, although lower than the same month last year, due to shrinking foreign investment returns.
The smaller trade deficit and the larger primary surplus helped bring the current account balance back to positive territory.
Source: Capital
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