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15848
Thu, 08/14/2008 - 10:24
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https://oananews.org//node/15848
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Japan's January-June current account surplus shrinks on import bill
Ministry said Wednesday.
In the first half of 2008, the nation's current account surplus declined 15.9 percent from the same period the previous year to 10,455.8 billion yen, theministry said in a preliminary report.
In June alone, the surplus narrowed by 1,022.4 billion yen from a year earlier to 493.9 billion yen for the fourth straight monthly slip, marking the smallestsurplus since January 2003.
The decline is the sharpest deterioration on record since 1985, the ministry said.
''If you look at the figures alone, the deterioration is appalling,'' saidKenichi Kawasaki, chief Japan economist at Lehman Brothers in Tokyo.
''But the outlook is likely to get better'' as recent falls in crude oil prices help to stem a possible slowdown in Asian economies and thus boost exports tothose economies from Japan, Kawasaki said.
For the first half of this year, the balance of trade and services posted asurplus of 2,651.9 billion yen, down 44.1 percent from a year before.
The surplus in merchandise trade dropped 35.8 percent to 3,764.2 billion yen, marking the first deterioration in four half-year periods and the smallestsurplus on record since 1985.
Exports grew 4.4 percent to 40,082.4 billion yen, up for the 13th straight half-year period. While Japanese shipments to the United States sank 9.2 percent, the decline was offset by exports to the rest of Asia and the MiddleEast, which rose 6.4 percent and 14.8 percent, respectively.
Imports, mainly raw materials from the Middle East, rose 11.6 percent to 36,318.2 billion yen, up for the 12th straight half-year period to log thehighest level on record.
''The prime reason why imports are increasing and exports are declining is thesurge in crude oil prices,'' a ministry official said.
He added that oil prices averaged $101.07 per barrel during the first sixmonths of 2008, up 65.9 percent from a year before.
Crude oil imports jumped 54.2 percent, followed by a 46.3 percent gain inliquefied natural gas and 44.6 percent rise in coal.
The income account, covering income from Japanese investments in foreign securities and payments by foreign employers in Japan, posted a surplus of8,537.1 billion yen, up 0.8 percent and logging the biggest surplus on record.
''The returns from direct investments are increasing so the surplus in income account is unlikely to decline that easily (in the future),'' Lehman's Kawasakisaid.
The balance of services logged a deficit of 1,112.3 billion yen, down 0.2percent from a year earlier, as payments from Japanese travelers declined.
In June alone, the balance of trade in goods and services plunged 99.8 percent from a year before to a surplus of 2.0 billion yen as the services tradedeficit grew, along with a sharp decline in trading of goods.
The surplus in merchandise trade narrowed 81.3 percent to 252.1 billion yen.
Exports fell 1.5 percent to 6,843.0 billion yen, slipping for the first time in 55 months since November 2003 as Japanese shipments to the United States andthe European Union dropped 15.4 percent and 11.2 percent, respectively.
Imports were up 17.8 percent to 6,590.9 billion yen, rising for the ninthstraight month on a 55.5 percent jump in crude oil imports.
Kawasaki said the import amount may have reached its peak in June and July asoil prices have begun to subside lately.
The income surplus increased 29.9 percent to 593.4 billion yen, up for the first time in three months, thanks to an expansion in surplus from directinvestments.
The balance of services logged a deficit of 250.1 billion yen, down 23.1 percent.
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.
In the first half of 2008, the nation's current account surplus declined 15.9 percent from the same period the previous year to 10,455.8 billion yen, theministry said in a preliminary report.
In June alone, the surplus narrowed by 1,022.4 billion yen from a year earlier to 493.9 billion yen for the fourth straight monthly slip, marking the smallestsurplus since January 2003.
The decline is the sharpest deterioration on record since 1985, the ministry said.
''If you look at the figures alone, the deterioration is appalling,'' saidKenichi Kawasaki, chief Japan economist at Lehman Brothers in Tokyo.
''But the outlook is likely to get better'' as recent falls in crude oil prices help to stem a possible slowdown in Asian economies and thus boost exports tothose economies from Japan, Kawasaki said.
For the first half of this year, the balance of trade and services posted asurplus of 2,651.9 billion yen, down 44.1 percent from a year before.
The surplus in merchandise trade dropped 35.8 percent to 3,764.2 billion yen, marking the first deterioration in four half-year periods and the smallestsurplus on record since 1985.
Exports grew 4.4 percent to 40,082.4 billion yen, up for the 13th straight half-year period. While Japanese shipments to the United States sank 9.2 percent, the decline was offset by exports to the rest of Asia and the MiddleEast, which rose 6.4 percent and 14.8 percent, respectively.
Imports, mainly raw materials from the Middle East, rose 11.6 percent to 36,318.2 billion yen, up for the 12th straight half-year period to log thehighest level on record.
''The prime reason why imports are increasing and exports are declining is thesurge in crude oil prices,'' a ministry official said.
He added that oil prices averaged $101.07 per barrel during the first sixmonths of 2008, up 65.9 percent from a year before.
Crude oil imports jumped 54.2 percent, followed by a 46.3 percent gain inliquefied natural gas and 44.6 percent rise in coal.
The income account, covering income from Japanese investments in foreign securities and payments by foreign employers in Japan, posted a surplus of8,537.1 billion yen, up 0.8 percent and logging the biggest surplus on record.
''The returns from direct investments are increasing so the surplus in income account is unlikely to decline that easily (in the future),'' Lehman's Kawasakisaid.
The balance of services logged a deficit of 1,112.3 billion yen, down 0.2percent from a year earlier, as payments from Japanese travelers declined.
In June alone, the balance of trade in goods and services plunged 99.8 percent from a year before to a surplus of 2.0 billion yen as the services tradedeficit grew, along with a sharp decline in trading of goods.
The surplus in merchandise trade narrowed 81.3 percent to 252.1 billion yen.
Exports fell 1.5 percent to 6,843.0 billion yen, slipping for the first time in 55 months since November 2003 as Japanese shipments to the United States andthe European Union dropped 15.4 percent and 11.2 percent, respectively.
Imports were up 17.8 percent to 6,590.9 billion yen, rising for the ninthstraight month on a 55.5 percent jump in crude oil imports.
Kawasaki said the import amount may have reached its peak in June and July asoil prices have begun to subside lately.
The income surplus increased 29.9 percent to 593.4 billion yen, up for the first time in three months, thanks to an expansion in surplus from directinvestments.
The balance of services logged a deficit of 250.1 billion yen, down 23.1 percent.
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.
