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Japan logs 1st current account deficit in 9 months in October

(Xinhua) 16:56, December 08, 2022

TOKYO, Dec. 8 (Xinhua) -- Japan logged a current account deficit of 64.1 billion yen (469.25 million U.S. dollars) in October, marking the first time in nine months the balance tuned negative, as soaring costs for oil imports were further inflated by the yen's weakness, the Finance Ministry said in a report on Thursday.

Japan's current account surplus stood at 1.73 trillion yen (12.66 billion U.S. dollars) in the same month a year earlier, with the latest reading marking the sharpest decline since record keeping began, the ministry said.

The ministry's preliminary data showed that Japan's goods trade deficit came in at 1.88 trillion yen (13.75 billion U.S. dollars) in October.

Imports totaled 10.86 trillion yen (79.45 billion U.S. dollars), rising 56.9 percent from a year earlier, marking the 21st straight month of increase.

Soaring prices for crude oil, liquefied natural gas and coal pushed up the value of imports, the ministry said. In yen terms, the price of crude oil rocketed 79.4 percent from a year earlier, the data showed.

Solid exports of vehicles and semiconductors in the reporting period saw exports increase for a 20th straight month, rising 26.9 percent to 8.99 trillion yen (65.80 billion U.S. dollars), the ministry said.

Imports from Asia and the Middle East increased markedly in October, the data showed, while shipments to Asia and North America were also significantly higher.

From a year earlier, including travel and cargo transportation, the deficit in services trade rose to 722.4 billion yen (5.28 billion U.S. dollars), the ministry said.

Japan's travel balance, meanwhile, was up from 18.2 billion yen (133.14 million U.S. dollars) booked a year earlier, to a surplus of 43.0 billion yen (314.58 million U.S. dollars), according to the latest data.

The country's primary income, in addition, which reflects returns on investments made overseas, logged a surplus of 2.83 trillion yen (20.70 billion U.S. dollars), up 451.5 billion yen (3.30 billion U.S. dollars) from a year earlier, the ministry said.

Japan's current account is one of the widest gauges of international trade, helped by income from foreign investments.

The data is keenly eyed by the Bank of Japan (BOJ) and the Finance Ministry ahead of new potential policy changes or monetary easing or tapering measures.

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

Both the Japanese government's and private payments are included in the calculation and it is called the "current account" because goods and services are generally consumed in the current period.

(Web editor: Cai Hairuo, Liang Jun)

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