Economic Buzz: Japan?s current account surplus dips slightly in February

Japan?s current account surplus fell slightly by 0.1% compared to last year, reaching 3.93 trillion yen ($24.8 billion) in February, according to the Finance Ministry. This small drop was mainly due to higher imports from China ahead of the Lunar New Year holidays.

The data does not yet reflect the impact of U.S.-Israeli attacks on Iran at the end of February. Officials noted that imports could decline in March as oil shipments from the Middle East may be disrupted due to issues in the Strait of Hormuz.

Income from overseas investments, such as dividends and interest, increased by 11.6% to 4.24 trillion yen, helped by the weaker yen.

Japan?s trade in goods saw a sharp decline in surplus, dropping 67% to 267.6 billion yen. While exports rose 2.8% to 9.37 trillion yen, imports grew faster at 9.7% to 9.10 trillion yen.

Meanwhile, the services trade deficit slightly improved, falling 0.4% to 284.5 billion yen, supported by stronger tourism. This means foreign visitors spent more in Japan than Japanese travelers spent abroad.

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