Japan's current account surplus hit record high in February

Japan's current account surplus experienced an impressive increase of 48.4% in February compared to the same month last year, reaching 4.06 trillion yen ($28.02 billion). This figure marks the highest monthly surplus recorded since data collection began in 1985, as reported by the country’s Finance Ministry.

After two months of deficits, Japan has successfully reported a current account surplus, primarily driven by a positive trade balance. In goods turnover, the surplus amounted to 712.9 billion yen ($4.92 billion), contrasting sharply with a deficit of 298.3 billion yen ($2.06 billion) noted in the previous year, according to a preliminary report from the ministry.

Exports saw an increase of 10.4%, largely attributed to heightened overseas shipments of automobiles and equipment used in semiconductor manufacturing. On the other hand, imports witnessed a decline of 1.9%, due to reduced purchases of crude oil and coal.

Additionally, the surplus on the primary income account, which mostly reflects the dividends and interest received by Japanese firms from abroad, climbed by 10.9%. However, the services trade deficit grew to 175.5 billion yen ($1.21 billion), up from 117.7 billion yen ($812.28 million) reported a year earlier.