Japan's current account surplus hits record high in fiscal 2004

China View ^ | May 16, 2005

[snowsislander]

TOKYO, May 16 (Xinhuanet) -- Japan's current account surplus hit arecord high of 18.29 trillion yen (about 171 billion US dollars) in fiscal 2004, up 5.8 percent from a year earlier and logging a record high for the second straight year, according to a preliminary report released by Japanese Finance Ministry on Monday.

It was also the third straight yearly expansion, and was spurred by brisk exports to the Asian and US markets and a record high surplus in the income account, the ministry said in the report.

The balance of trade in goods and services for the year to March 31 posted a surplus of 9.52 trillion yen (88.9 billion dollars), down 0.9 percent.

The surplus in merchandise trade grew 2.0 percent to 13.56 trillion yen (126.7 billion dollars), with exports up 10.2 percent to 58.83 trillion yen (549.8 billion dollars) and imports up 13.0 percent to 45.27 trillion yen (423.1 billion dollars).

Exports to all major trading partners increased, with those to Asia up 13.6 percent and shipments to the United States up 3.6 percent. Exports to the European Union rose 5.9 percent.

Imports from Asian economies increased 13.5 percent and those from the European Union rose 4.6 percent. But imports from the United States shrank 0.3 percent. Imports were inflated in value terms due to surges in oil and other commodity prices.

According to the report, the balance of Japan's services trade for fiscal 2004 logged a deficit of 4.04 trillion yen (37.7 billion dollars), up 9.5 percent from a year earlier for the first expansion in two years.

The income account, covering income from Japanese investments in foreign securities and payments by foreign employers in Japan, marked a record high surplus of 9.73 trillion yen, up 14.3 percentfrom a year earlier.

The current account balance -- the broadest gauge of trade in goods and services -- is the difference between a nation's income from foreign sources and foreign obligations payable, excluding net capital investment.

[snowsislander]

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