Japan logs current account surplus of ¥17.43 tril in 1st half of 2026

Japan’s current account surplus in the first half of 2026 rose 22.5 percent from a year earlier to 17.43 trillion yen ($110 billion) as the trade balance swung into the black, government data showed Monday.

The surplus in the current account balance, one of the widest gauges of international trade, hit its highest level for a first half since comparable data became available in 1985, also driven by an increase in dividend income from overseas investments, the Finance Ministry said.

The goods trade balance turned positive in the first six months of the year with a surplus of 742.1 billion yen, compared with a deficit of 1.46 trillion yen in the same period a year earlier, the ministry’s preliminary report said.

In the January-June period, exports grew 12.8 percent to 59.19 trillion yen, reflecting robust demand for chip-related electronics and autos, while imports increased 8.4 percent to 58.45 trillion yen.

Among other key components, primary income, which reflects how much Japan earned from overseas investments, edged up 0.3 percent to 20.49 trillion yen, the ministry said.

However, the services trade deficit expanded 15.4 percent to 1.82 trillion yen, weighed down by a smaller travel surplus, which stood at 3.13 trillion yen.

According to data from the Japan National Tourism Organization, inbound visitors to Japan dropped 2.0 percent from the previous year to 21.08 million in the first half of 2026, while outbound travelers increased 5.1 percent to 6.94 million.

A surplus in the travel balance means that spending by foreign visitors in Japan exceeds the amount spent by Japanese residents overseas.

In June alone, the country logged a 92.3 billion yen current account deficit, falling into the red for the first time in 17 months, due to a smaller primary income surplus and a trade deficit.

Primary income stood at 380.1 billion yen, down 73.7 percent, in the reporting month, with a ministry official saying dividend payments by Japanese companies to overseas investors increased.

© KYODO