, Japan

Japan's current account surplus predicted to hit JPY300b

Still better than February's number.

According to DBS, the balance of payment statistics for March (due tomorrow) will likely show a small improvement in the current account. 

The unadjusted current account balance is expected to register a surplus of JPY 1.1trn, widening from JPY 637bn in the previous month.

Here's more from DBS:

Striping out seasonal factors, the current account is likely to post a small surplus of JPY 300bn, also better than JPY -0.1bn in February.

Merchandise trade deficit narrowed slightly in March. The services trade deficit has been narrowing more obviously ever since 4Q12, as tourist inflows increased along with the weakening of yen. Meanwhile, the income account surplus should have widened in March, due to the peak season of earnings payments.

A larger improvement in the current account lies ahead in 2H, as export demand is expected to strengthen, and the impact of yen depreciation on goods and services trade will become more noticeable.

The recent fall in global commodity prices also bodes well for Japan, as it reduces costs of energy imports (30% of Japan’s total imports).

Admittedly, the structural headwinds will remain in the longer term, such as the worsening of demographics, fall in household savings and deterioration of  trade competitiveness.

Join Singapore Business Review community

As far as the 6-month outlook is concerned, a cyclical improvement in the current account should be on the way and this will lend some support to the yen exchange rates.

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

Vibrant Group wins suit against Blackgold Australia
The group shall be paid damages and fees by Blackgold Australia’s ex-CEO and ex-chairman.
Lorem Ipsum text in year 2025
Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old.
Lorem Ipsum is simply dummy text of the printing and typesetting industry.
Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old. Richard McClintock, a Latin professor at Hampden-Sydney College in Virginia, looked up one of the more obscure Latin words, consectetur, from a Lorem Ipsum passage, and going through the cites of the word in classical literature, discovered the undoubtable source. Lorem Ipsum comes from sections 1.10.32 and 1.10.33 of "de Finibus Bonorum et Malorum" (The Extremes of Good and Evil) by Cicero, written in 45 BC. This book is a treatise on the theory of ethics, very popular during the Renaissance. The first line of Lorem Ipsum, "Lorem ipsum dolor sit amet..", comes from a line in section 1.10.32.