- Takuji Okubo, chief economist at Japan Macro Advisors
Japan's current-account surplus widened to the most in seven years in March, supported by an improvement in the trade balance as well as increased income from overseas. The surplus in the current account, the broadest measure of Japan's trade with the rest of the world, was 2.8 trillion yen in the reported month, the Ministry of Finance said, expanding from 1.44 trillion yen in February. Economists had expected a 2.06 trillion yen surplus in March. A cheaper nation's import bill due to tumbling energy prices, coupled with an inflow of tourists attracted by a weaker yen and rising income from investments abroad by Japanese companies helped increase the surplus. The boost aids the Japanese economy that is weighed down by weak spending by consumers and businesses at home. Economists believe that the current account surplus is likely to remain at a high level in the foreseeable future, even if it comes down from March's high, though they express doubt on whether there could be any further rise in the size of the surplus. Current account surpluses are typically larger in March due to seasonal factors.
Exports surged almost 10% year-on-year in March to 7.14 trillion yen, while imports plummeted more than 15% over the same period to 6.47 trillion yen. Japan's services balance swung into surplus by 167 billion yen in the reported month, from February's 108 billion yen deficit.
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