Japan's current account surplus hits record high in FY 2024

TOKYO, May 12 (Xinhua) -- Japan logged a record current account surplus of 30.38 trillion yen (about 208 billion U.S. dollars) in fiscal 2024, marking the highest level since comparable data became available in 1985, data from the Ministry of Finance showed Monday.

The surplus was primarily driven by a robust primary income surplus of 41.71 trillion yen, reflecting increased returns from overseas investments, including dividends and interest earnings.

The depreciation of the yen played a crucial role in enhancing the foreign investment returns. The average exchange rate in fiscal 2024 was 152.48 yen to the U.S. dollar, reflecting a 5.5-percent depreciation from fiscal 2023.

The trade balance showed a deficit of 4.05 trillion yen, a 9.8-percent increase from the previous year.

Breaking it down, exports rose 4.1 percent to 106.24 trillion yen, supported by strong shipments of semiconductor manufacturing equipment to Asia and automobiles to the United States.

Imports increased by 4.3 percent to 110.287 trillion yen, driven by demand for items such as computers and smartphones.

The services balance posted a deficit of 2.58 trillion yen. The number of inbound tourists to Japan hit a record high of 38.85 million in fiscal 2024, leading to a travel surplus of 6.69 trillion yen, a 58.3-percent surge from the previous year, the data showed. ■