The Japan current account surplus developed to a 10-year high
of JPY 21.87 trillion in the last year, being driven by strong earnings from foreign investments and an all-time high travel surplus, as the local government declared in February of this year. In this article, our company formation consultants in Japan
further explain this data and other aspects related to it.
More information on the account surplus in Japan
The 7.5% year-on-year increase in the current account
also happened while the country
took advantage from a rising international trade.
However, a flow of the energy imports to this country which is poor in resources weighed on the trade surplus in 2017, as shown in the preliminary data released by the Finance Ministry.
A ministry official also added that one of the main causes for this increase was the fact that the primary income account registered rising dividends received from foreign subsidiaries
. If you would like to open
such a company in Japan
, our Japan company formation
While the number of visitors in Japan reached another record high last year, the travel surplus of the country reached its highest rate as well, attaining JPY 1.76 trillion from JPY 1.33 trillion in the previous year.
The country registered a trade surplus for the second year in a row at JPY 4.93 trillion, even though it reached a 10.8% year-on-year decrease while exports increased with 11.9% to JPY 77.20 trillion and the imports – with 13.9% to JPY 72.26 trillion.
How was this 10-year high possible in Japan?
Japan registered this current account surplus for 2017 due to a record number of foreign visitors and strong earnings from foreign investments.
The deficit in services decreased to JPY 706 billion in 2017, which is a decrease of 38.5% and the lowest since 1996. In the same year, there were 28.6 million foreign visitors who came to Japan. Our company registration
agents in Japan
can offer further details on this matter.
The travel service balance alone registered JPY 1.76 trillion, which represents a record in comparable information, while inbound visitors spent more capital than local travelers who went abroad.
If you would like to learn more about the current account surplus in Japan
, or for assistance in setting up a company in Japan
, please feel free to get in touch
with our friendly staff.