Japan logs record $193 billion current account surplus in 2024

Japan posted a current account surplus of 29.26 trillion yen ($193 billion) in 2024, a record high, driven by its highest-ever returns on foreign investments amid a weak yen and a decline in the trade deficit, the Finance Ministry data showed Monday.

According to Kyodo News, the surplus in the current account balance, one of the widest gauges of international trade, grew 29.5 per cent from a year earlier, rising for the second consecutive year and marking the highest since comparable data became available in 1985.

Primary income, which reflects how much Japan earned from overseas investments, climbed 11.3 percent from the year before to 40.21 trillion yen, buoyed by higher returns from offshore subsidiaries in the financial, retail and auto sectors, the ministry said in its preliminary report.

Japan’s primary income has been boosted by returns from foreign direct investments by domestic companies and overseas dividend income.

Goods trade registered a deficit of 3.90 trillion yen, down 40 percent, with exports rising 4.5 percent to 104.87 trillion yen, led by strong demand for semiconductor-making equipment and vehicles.

Imports also increased 1.8 percent to 108.77 trillion yen due to increased shipments of personal computers and nonferrous metals.

  RM