Japan's current account surplus rises 26.1 pct in July

Japan's current account surplus rose 26.1 percent in July from a year earlier, the Ministry of Finance (MOF) said in a report on Wednesday.

In the recording period Japan's surplus stood at 1,675.9 billion yen (20 billion U.S. dollars), far higher than the median forecast for a 17.5 percent increase, or 1.5615 trillion yen.

In a preliminary report the ministry data revealed the balance of trade in goods and services posted a surplus of 738.3 billion yen (8.81 billion U.S. dollars).

The balance of trade is the difference between a nation's exports of goods and services and its imports of goods and services, if all financial transfers, investments and other components are ignored.

A nation is said to have a trade deficit if it is importing more than it exports.

Positive net sales by Japan abroad generally contributes to a current account surplus and because exports generate positive net sales, and because the trade balance is typically the largest component of the current account, a current account surplus is usually associated with positive net exports.

The current account balance is one of the major gauges of the nature of Japan's foreign trade.

A current account surplus increases Japan's net foreign assets by the corresponding amount, and a current account deficit does the reverse.

Both government and private payments are included in the calculation.

Source:Xinhua