Japan current account surplus rises to 2.99 trillion yen

Japan's current account surplus rose to 2.9889 trillion yen in July 2026, an increase of 402.6 billion yen compared to the previous year. While the country faced a trade and services deficit of 912.8 billion yen, the overall surplus was driven by a significant expansion in the primary income balance and a narrowing deficit in the services sector.

The trade deficit of 399.9 billion yen was influenced by a 25.9% increase in imports, totaling 11.656 trillion yen, which outpaced a 24.1% increase in exports (11.256 trillion yen). Key export drivers included automobiles, semiconductors, and electronic components, particularly to Asia and North America. Rising crude oil prices also contributed to higher import costs.

The services deficit narrowed due to strong inbound tourism, with 3,442,100 foreign visitors arriving in July. Crucially, the primary income balance reached a surplus of 4.2896 trillion yen, bolstered by increased returns from direct investments abroad. This reflects a structural shift where Japan's current account strength is increasingly derived from interest and dividends from overseas assets rather than traditional trade surpluses.