Japan's current account surplus down 52.5pc
Thursday, 16 October 2008
TOKYO, Oct 15 (AP): Japan's current account surplus in August shrank 52.5 per cent from a year earlier as the country's spending on oil imports soared, the finance ministry said Wednesday.
The surplus in the current account, the broadest measure of Japan's trade with the rest of the world, came at 988.8 billion yen ($9.7 billion), marking the sixth consecutive year-on-year fall.
The current account measures trade in goods, services, tourism and investment. It is calculated by determining the difference between Japan's income from foreign sources against payments on foreign obligations and excludes net capital investment.
Exports in August edged up 0.9 per cent to 6.72 trillion yen ($65.6 billion), while imports jumped 20.2 per cent to 6.96 trillion yen ($68 billion) in the month.
Due to a surge in import oil costs, Japan incurred a trade deficit worth 236 billion yen ($2.3 billion) in August, its first monthly trade deficit since January 2006. The ministry said it was also the largest trade deficit on record.
Oil alone accounts for 25 per cent of Japan's total imports. The ministry said oil imports in August soared 64.2 per cent year-on-year.
The surplus in the current account, the broadest measure of Japan's trade with the rest of the world, came at 988.8 billion yen ($9.7 billion), marking the sixth consecutive year-on-year fall.
The current account measures trade in goods, services, tourism and investment. It is calculated by determining the difference between Japan's income from foreign sources against payments on foreign obligations and excludes net capital investment.
Exports in August edged up 0.9 per cent to 6.72 trillion yen ($65.6 billion), while imports jumped 20.2 per cent to 6.96 trillion yen ($68 billion) in the month.
Due to a surge in import oil costs, Japan incurred a trade deficit worth 236 billion yen ($2.3 billion) in August, its first monthly trade deficit since January 2006. The ministry said it was also the largest trade deficit on record.
Oil alone accounts for 25 per cent of Japan's total imports. The ministry said oil imports in August soared 64.2 per cent year-on-year.