Japan saw a record current account surplus for the second straight year in 2025, posting a 31.88 trillion yen surplus on higher returns on foreign investments and a smaller trade deficit due to stronger exports, government data showed Monday.
The surplus in the current account balance, one of the widest gauges of international trade, grew 11.1 percent from a year earlier, hitting the highest level since comparable data became available in 1985, the Finance Ministry said in its preliminary report.
Primary income, which reflects how much Japan earned from overseas investments, grew 4.7 percent to 41.59 trillion yen, as dividends from offshore subsidiaries increased, it said.
The goods trade deficit plunged 76.8 percent to 848.7 billion yen with exports rising 2.5 percent to 107.76 trillion yen, on the back of robust demand for semiconductors and foods, while imports edged down 0.1 percent to 108.61 trillion yen.
The services trade balance saw a deficit of 3.39 trillion yen, up 22.2 percent, due to more payouts for research and development services abroad, including for copyright royalties, in the pharmaceutical and auto sectors.
The travel surplus, meanwhile, came to 6.34 trillion yen, hitting a new record, buoyed by upbeat inbound tourism.
A surplus in the travel balance means that spending by foreign visitors in Japan exceeded the amount spent by outbound Japanese travelers.
In December alone, the country's current account surplus dropped 32.0 percent from a year earlier to a 728.8 billion yen, the ministry said.
© KYODO
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Namorada
Well, when it is punitively expensive to travel abroad for a lot of people, the inbound are going to spend more.
It sure would be nice if some of this “success” actually came in the form of higher wages, not just a weak yen helping line the pockets of exporters so they can keep their coffers full since domestic consumption by those of us in Japan isn’t a concern.
Longhaul
Japan has successfully transitioned from a country that sells goods to the world to a country that owns the world’s assets. This record surplus provides a vital cushion for the economy, even as domestic consumption remains tepid and trade tensions with the U.S. fluctuate.