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12153
Fri, 07/11/2008 - 11:48
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https://oananews.org//node/12153
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May current account surplus down 5.9% on income surplus fall
TOKYO, July 11 Kyodo - Japan's current account surplus in May shrank 5.9 percent from a year earlier to 2,000.6 billion yen for the third straight monthly slip, as a fall in the income surplus overwhelmed expansion in the goods and services trade surplus, the Finance Ministry said Thursday.
The balance of trade in goods and services posted a surplus of 506.6 billion yen, up 20.8 percent for the first increase in seven months, the ministry saidin a preliminary report.
However, the income surplus dropped 12.6 percent to 1,565.0 billion yen, down for the second straight month, with falls in interest on foreign bonds boughtby investors in Japan.
A ministry official said the decline in bond interest was caused by a special factor in May, as the original interest payment date at the end of the monthwas the weekend this year and they were actually paid in June.
The surplus in merchandise trade expanded 6.3 percent to 529.4 billion yen forthe first gain in seven months, as growth in exports outpaced rise in imports.
Exports rose 4.2 percent to 6,504.5 billion yen, expanding for the 54th straight month. Japanese shipments to the United States and the European Union sank 9.4 percent and 1.1 percent, respectively, but exports to the rest of Asiasaw an 8.1 percent increase.
The official said although auto exports to the U.S. and European markets posteddeclines, shipments to Russia grew from a year earlier.
Imports climbed 4.0 percent to 5,975.2 billion yen, up for the eighth straight month, on a 53.6 percent jump in crude oil imports, 47.5 percent rise in coaland 21.1 percent gain in liquefied natural gas.
Yasuo Goto, chief economist at the Mitsubishi Research Institute, said although export growth outpaced import expansion in May, the long-term trend is expectedto be vice versa, helping to diminish the current account surplus.
''Japan's exports are projected to weaken amid the deceleration of the overseas economy, while surging crude oil prices will continue to boost the country'simports,'' Goto said.
He also said the nation's income surplus is forecast to decline as returns from investment in foreign bonds will be smaller than a year before, following theoutbreak of the U.S. subprime crisis last summer.
Global interest rate levels fell after the subprime woes, as investors turnedto bonds in a flight to quality amid fears of a credit squeeze, he said.
Trade in services recorded a deficit of 22.8 billion yen in May. The services trade deficit narrowed 71.0 percent from a year earlier for the second month of fall, as payments from overseas travelers in Japan increased in the reportingmonth.
The current account balance -- the broadest gauge of trade -- is the difference between a nation's income from foreign sources and foreign obligations payable, excluding net capital investment.==Kyodo
The balance of trade in goods and services posted a surplus of 506.6 billion yen, up 20.8 percent for the first increase in seven months, the ministry saidin a preliminary report.
However, the income surplus dropped 12.6 percent to 1,565.0 billion yen, down for the second straight month, with falls in interest on foreign bonds boughtby investors in Japan.
A ministry official said the decline in bond interest was caused by a special factor in May, as the original interest payment date at the end of the monthwas the weekend this year and they were actually paid in June.
The surplus in merchandise trade expanded 6.3 percent to 529.4 billion yen forthe first gain in seven months, as growth in exports outpaced rise in imports.
Exports rose 4.2 percent to 6,504.5 billion yen, expanding for the 54th straight month. Japanese shipments to the United States and the European Union sank 9.4 percent and 1.1 percent, respectively, but exports to the rest of Asiasaw an 8.1 percent increase.
The official said although auto exports to the U.S. and European markets posteddeclines, shipments to Russia grew from a year earlier.
Imports climbed 4.0 percent to 5,975.2 billion yen, up for the eighth straight month, on a 53.6 percent jump in crude oil imports, 47.5 percent rise in coaland 21.1 percent gain in liquefied natural gas.
Yasuo Goto, chief economist at the Mitsubishi Research Institute, said although export growth outpaced import expansion in May, the long-term trend is expectedto be vice versa, helping to diminish the current account surplus.
''Japan's exports are projected to weaken amid the deceleration of the overseas economy, while surging crude oil prices will continue to boost the country'simports,'' Goto said.
He also said the nation's income surplus is forecast to decline as returns from investment in foreign bonds will be smaller than a year before, following theoutbreak of the U.S. subprime crisis last summer.
Global interest rate levels fell after the subprime woes, as investors turnedto bonds in a flight to quality amid fears of a credit squeeze, he said.
Trade in services recorded a deficit of 22.8 billion yen in May. The services trade deficit narrowed 71.0 percent from a year earlier for the second month of fall, as payments from overseas travelers in Japan increased in the reportingmonth.
The current account balance -- the broadest gauge of trade -- is the difference between a nation's income from foreign sources and foreign obligations payable, excluding net capital investment.==Kyodo
