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TOKYO (Kyodo) — Japan posted a record current account surplus of 30.38 trillion yen ($208 billion) in fiscal 2024, marking a high for the second consecutive year, buoyed by its biggest-ever returns on foreign investments, government data showed Monday.
In the year ended March, the surplus in the current account balance, one of the widest gauges of international trade, grew 16.1 percent from the previous year, hitting the highest level since comparable data became available for fiscal 1985, the Finance Ministry said.
Primary income, which reflects how much Japan earned from overseas investments, stood at a record-high 41.71 trillion yen, up 11.7 percent from a year earlier, driven by increased dividends from offshore subsidiaries amid a weak yen, the ministry said in a preliminary report.
The yen averaged 152.48 against the U.S. dollar in fiscal 2024, 5.5 percent weaker than the year before, with the Japanese currency’s depreciation inflating the value of returns from foreign investments by domestic companies and overseas dividend income.
Among other key components, the goods trade balance registered a deficit of 4.05 trillion yen, expanding 9.8 percent, as imports climbed 4.3 percent to 110.29 trillion yen, supported by strong demand for personal computers and smartphones.
Exports rose 4.1 percent to 106.24 trillion yen, helped by shipments of semiconductor-making equipment, electronics parts and vehicles.
The country’s services trade deficit fell 20.2 percent to 2.58 trillion yen due to an expansion of the travel surplus, which stood at a record 6.69 trillion yen. Around 38.85 million foreign tourists visited Japan in fiscal 2024, up 34.7 percent from a year earlier, according to the ministry.
A surplus in the travel balance means that spending in Japan by foreign visitors exceeded the amount spent overseas by residents of Japan.
In March alone, the country logged a 3.68 trillion yen current account surplus, the third highest for any month, the ministry said.
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