Japan Current Account Shows First Deficit in 9 Months

Japan’s current account balance logged a deficit for the first time in nine months in October, as a surge in fuel imports more than offset increases in exports and direct investment income, government data showed Monday.

The deficit in the balance, one of the widest gauges of international trade, stood at 127.9 billion yen in the reporting month, the Finance Ministry said in a preliminary report.

The goods trade balance registered a deficit of 1.09 trillion yen in October, as imports grew 28.2 percent from a year earlier to 6.93 trillion yen due to rising imports of crude oil and liquefied natural gas, while exports expanded 17.9 percent to 5.83 trillion yen.

During the same month, the Japanese currency dropped against the U.S. dollar by 23.9 percent on year on an average basis and the euro by 30.2 percent, according to the ministry.

A weaker yen usually boosts the competitiveness of Japanese exporters and increases the value of overseas revenue in yen terms, while pushing up import costs.

The income account, which reflects how much Japan earns from its foreign investments, rose 9.1 percent in October for the second straight month of increase.

via Mainichi

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