Japan Current Account Surplus Narrows to 5-Year Low

Japan’s current account surplus narrowed to the lowest level in five years in June as exports took a hit due to the Covid-19 on global demand.

The current account surplus was JPY 167.5 billion ($1.58 billion), the smallest monthly surplus since January 2015, a finance ministry official said on Tuesday, according to Reuters.  While the actual figure bettered the median forecast for a JPY 110 billion surplus, it marked a significant deterioration from a JPY 1.177 trillion surplus in May.

The current account has posted monthly surpluses for six straight years.  Exports plunged 25.7% in June from a year ago, having declined by 28.9% in May, while imports dropped an annual 14.4%, following a 27.7% annual fall in May.