Japan Current Account

Japan's current account turned to a deficit of JPY 256.6 billion in January 2025 from a surplus of JPY 334.3 billion in the same month of the previous year, surpassing market forecasts of a JPY 230.5 billion shortfall and marking the first gap since January 2023. The goods account deficit widened sharply to JPY 2,937.9 billion from JPY 1,523.2 billion a year earlier, as exports (2.1%) increased much slower than imports (17.7%). At the same time, the secondary income shortfall stood at JPY 444.7 billion, compared with a gap of JPY 446.1 billion. Meanwhile, the services account deficit sharply decreased to JPY 476.6 billion from JPY 684.4 billion in the prior year. Simultaneously, the primary income surplus increased to JPY 3,601.5 billion from JPY 2,988 billion. In 2024, Japan logged a record high current account surplus of JPY 29.26 trillion, boosted by record-breaking returns from foreign investments, a weakening yen, and a declining trade deficit.