TOKYO (Kyodo) — Japan’s current account surplus rose 3.2 percent from a year earlier to 2.26 trillion yen ($15.6 billion) in April, remaining in the black for the third consecutive month, lifted by a significant contraction in the trade deficit, the government said Monday.
The surplus, which was the biggest for the reporting month, came as the country’s trade deficit shrank 94.8 percent to 32.8 billion yen, as exports increased 4.0 percent to 8.77 trillion yen on the back of brisk demand for semiconductors and food items.
Imports decreased 2.9 percent to 8.80 trillion yen, led by a drop in the value of coal and crude oil purchases, according to the Finance Ministry’s preliminary data.
The current account balance is one of the widest gauges of international trade. A ministry official said the impact of hefty U.S. tariffs imposed by President Donald Trump on the data has been “unclear.”
Primary income, which reflects how much Japan earns from overseas investments, declined 9.6 percent from a year earlier to 3.59 trillion yen caused by a fall in earnings from direct investments due to a firmer yen.
The yen on average traded 5.9 percent higher against the U.S. dollar in April from a year earlier, according to the ministry.
Among other key components, the country’s services trade deficit expanded 4.8 percent to 768.1 billion yen, affected by increased payments for intellectual property rights.
The travel surplus increased 18.3 percent to 675.7 billion yen, with around 3.91 million foreigners visiting Japan, up 28.5 percent from a year earlier.
A surplus in the travel balance means that spending by foreign visitors in Japan exceeded the amount spent by Japanese residents overseas.