Tokyo, Japan — In a significant economic development, Japan’s current account surplus soared to an unprecedented level in fiscal year 2024, reaching 30,377.1 billion yen, as reported by the Finance Ministry on Monday. This record-breaking figure marks the highest surplus since data collection began in 1985, surpassing the previous record of 26,166.4 billion yen set in fiscal 2023. The substantial increase can largely be attributed to the depreciation of the yen, which enhanced dividend and interest flows from overseas investments.
The primary income account saw a notable surge, with a surplus growing 11.7 percent from the previous year to 41,711.4 billion yen. This increase is primarily due to the rise in dividend and income payments to Japanese companies from their subsidiaries abroad, benefiting from the weaker yen against the dollar and other leading currencies. Nevertheless, Japan faced a goods trade deficit of 4,048 billion yen, widening from the prior year’s 3,686.6 billion yen. Despite this, exports experienced a 4.1 percent increase, driven by strong demand for semiconductor manufacturing equipment and vehicles, while imports rose by 4.3 percent, fueled by the need for computers.
In the services trade sector, Japan recorded a deficit of 2,576.7 billion yen, which was an improvement from the previous year’s 3,230.7 billion yen deficit. The travel account, however, reached a new surplus record of 6,686.4 billion yen, counterbalanced by a record deficit in digital trade, including online advertising, amounting to 6,965.1 billion yen.
The month of March alone saw Japan’s current account surplus expand by 6.7 percent year-on-year, achieving a new high of 3,678.1 billion yen for the month. This fiscal milestone underscores the complex interplay of global market forces and domestic economic policies, highlighting the challenges and opportunities faced by Japan in navigating its economic landscape.