- Daiki Takahashi, economist at Dai-ichi Life Research Institute
Although Japan's current account surplus shrank in November, but it remained close to the highest level in three months reached in October. It was also the fifth consecutive month, when the nation posted current account surplus as a weaker Japanese Yen boosted income form foreign investment. Japan's seasonally adjusted surplus came in at 914.5 billion yen, the Ministry of Finance said, compared with a 947 billion yen deficit in the preceding month. Exports rose 5.1% in November compared with a month earlier, while imports climbed by 2.4% over the same period, resulting in the goods trade balance in a narrower deficit of 665.6 billion yen, compared with the previous deficit of 816.9 billion yen. On an unadjusted basis, surplus was 433.0 billion yen in November, narrowing from October's 833.4 billion yen.
Trade deficits over the past two and half years have weighed on the current account, bringing it occasionally into deficit. However, improving exports in November helped cut the monthly trade deficit by 42%. A weaker Yen, meanwhile, has helped boost the value of returns on securities and direct investments overseas held by the Japan's residents. The primary income account, which indicates overseas investment returns, was 1.28 trillion yen in November, rising 44.4% on year and the biggest surplus reading on record for the month.
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