Japan logs its first current account deficit in two years in January #JapanFinance

Japan swung to a current account deficit for the first time in two years in January as the deficit in goods trade nearly doubled due to the effects from the Lunar New Year holidays, preliminary government data showed Monday.

The nation logged a deficit of ¥257.6 billion in the current account, a measure of trade and investment flows, compared with a surplus of ¥334.3 billion a year before, the Finance Ministry said.

In goods trade, Japan’s deficit climbed 92.9% from a year earlier to ¥2,937.9 billion as its imports grew faster than its exports. Japan’s imports from China tend to increase before the Lunar New Year holidays, while its exports to China decline.

Japan’s overall imports surged 17.7% to ¥10.44 trillion and its exports rose 2.1% to ¥7.50 trillion.

The surplus on the primary income account, which covers Japanese companies’ dividend and interest receipts from abroad, jumped 20.5% to ¥3.60 trillion, its highest level for January, thanks to dividends in the automobile industry.

In services trade, Japan’s deficit shrank 30.4% to ¥476.6 billion as the surplus in travel services grew to a monthly high of ¥708.3 billion on a rise in the number of visitors to Japan.