Japan current account surplus hits record level in new support for economy

Japan’s current account surplus reached a record 12.7 trillion yen during the first half of the current fiscal year, representing a potential positive development on the country’s path to economic recovery and may also provide support for Japan’s weak yen currency.

Japan’s current account surplus reached a record 12.7 trillion yen ($84.2 billion) during the six months to September, driven by a drop in imports, according to data announced by the Ministry of Finance on Thursday.

The surplus also climbed to 2.72 trillion yen in September, the highest it had touched in 18 months, although it fell short of the consensus forecast of 2.98 trillion yen by economic analysts.

The country’s current account surpluses continue to reach eight months.

Thursday’s data carries some good signs for the economy as it shows a trend of lower energy imports while auto exports recover on the back of easing supply chain constraints, and the return of tourists is also evident.

Japan is due to release preliminary GDP data for July–September next Wednesday.