TOKYO, Jul 8 (NNN-NHK) – Japan’s current account surplus in May, increased 85.3 percent from the previous year, as exports recovered from a slump in 2020, hit by the COVID-19 pandemic and rose significantly, government data showed today.
The current account balance, one of the widest gauges of international trade, logged a surplus of 1.98 trillion yen (18 billion U.S. dollars) in May, the third straight month to record the 83rd consecutive month of black ink, the finance ministry said, in a preliminary report. In Apr, the surplus showed a more than six-fold jump.
Goods trade balance marked a surplus of 2.0 billion yen (18.1 million dollars), a significant change from a 512.5 billion yen (4.6 billion dollars) deficit a year ago, with exports going up 46.5 percent to 6.18 trillion yen (55.9 billion dollars).
The value of shipments to Asian nations rose 32.5 percent, and those to North America expanded 94.0 percent, stimulated by strong needs for car-related products and semiconductor-producing equipment, a ministry official said.
Japan exports were struck terribly in May, 2020, with overseas demand for cars, auto parts and other products shrinking, as a number of major cities abroad were going through strict lockdowns, together with fallow production activities, amid the spreading condition of COVID-19 infections in Japan.
Imports also increased 30.6 percent to 6.18 trillion yen (55.9 billion dollars). Purchases of crude oil expanded almost threefold, with the prices of value turning higher. Those pharmaceutical products soared 61.2 percent, probably improved by growing demand for COVID-19 vaccines, according to local media.
The services trade deficit declined to 255.5 billion yen (2.3 billion dollars) from 271.1 billion yen (2.5 billion dollars) the previous year, thanks to a recovery in charges Japanese companies receive for their patents, other intellectual property rights, as well as, shipping export items, the official said.
The surplus in primary income, reflecting returns on overseas investments, gained 18.8 percent from last year to 2.45 trillion yen (22.2 billion dollars), raised by an increase in returns on direct overseas investments and dividend payments that domestic companies accepted from overseas subsidiaries.– NNN-NHK
