THE JAPAN NEWS


 

 
TOKYO (Jiji Press) — The nation’s current account surplus in May fell 2.4 percent from a year before to ¥1,809.1 billion, partly because of effects of a higher yen, government data showed Friday.

The balance was in the black for the 23rd straight month, according to the data from the Finance Ministry.

The May surplus shrank as the yen-denominated value of dividend and interest incomes from abroad decreased reflecting the appreciation of the Japanese currency, although the goods trade balance is improving on the back of sluggish oil prices.

The result compared with the average forecast of ¥1,781.6 billion in surplus among 20 economic research institutes surveyed by Jiji Press.
Japan posted a goods trade surplus of ¥39.9 billion, against ¥48.7 billion in deficit a year before, the ministry said.

Exports were down 11.9 percent to ¥5,045.6 billion. Steel exports decreased amid price falls attributable to overproduction by Chinese steelmakers. Shipments of electronics parts were weak as their prices fell due to a pause in the rise in demand for smartphones.
Japan’s imports dropped 13.4 percent to ¥5,005.7 billion, affected by falls in oil and liquefied natural gas prices traced to weak crude prices.

The country logged a surplus of ¥117.4 billion in services trade, the first black ink in two months.

The surplus in the travel account stood at ¥125.4 billion, the largest for May, thanks to a rise in the number of foreign visitors to Japan, although travelers from South Korea decreased in the wake of a series of strong earthquakes in Kumamoto Prefecture, southwestern Japan, in April.

The surplus in the primary income account shrank 5.3 percent to ¥1,898.2 billion, because of the drop in dividend and interest incomes.

Looking ahead, a Finance Ministry official said that close attention should be paid to how and to what extent Japan’s exports and imports will be affected by Britain’s decision to leave the European Union in a closely watched national referendum in late June.