Japan Current Account Surplus Rises as Expected

Japan’s current account surplus increased to JPY 4,681.5 billion in March 2026 from JPY 3,625.3 billion in the same month a year earlier, surpassing market expectations of JPY 3,879 billion and marking the largest amount on record. The goods account surplus surged to JPY 830.5 billion from JPY 611.3 billion in the prior year, as export growth (11.7%) outpaced imports (10.0%). Also, the primary income surplus widened to JPY 4,630.7 billion from JPY 3,832.6 billion. Meantime, Meanwhile, the secondary income deficit narrowed to JPY 522.0 billion from JPY 778.9 billion, while the services account deficit widened sharply to JPY 257.8 billion from JPY 39.8 billion. At the same time, the services account deficit increased significantly to JPY 257.8 billion from JPY 39.8 billion.

Japan’s current account surplus stood at JPY 3,932.7 billion in February 2026, little changed from JPY 3,938.4 billion a year earlier but exceeding market expectations of JPY 3,549 billion. The latest figure marked the largest surplus since September, supported mainly by stronger income flows despite weaker trade dynamics. The goods account surplus narrowed sharply to JPY 267.6 billion from JPY 809.9 billion in the prior year, as export growth (2.8%) lagged behind a faster rise in imports (9.7%). Meanwhile, the primary income surplus widened to JPY 4,240.3 billion from JPY 3,798.6 billion, remaining the key driver of the overall surplus. The services account deficit was broadly stable at JPY 284.5 billion (vs JPY 285.7 billion), while the secondary income deficit narrowed to JPY 290.8 billion from JPY 384.4 billion.

Japan’s current account surplus jumped to JPY 942.6 billion in January 2026 from JPY 344.6 billion in the same month a year earlier, though it came in slightly less than market forecasts for a gain of JPY 960 billion. The improvement was largely driven by a sharp narrowing in the goods account deficit, which shrank to JPY 600.4 billion from JPY 2,934.0 billion a year earlier, as exports surged 20.5% while imports declined 7.7%, reflecting softer energy import costs and resilient external demand. However, other components were less supportive. The primary income surplus, mainly earnings from overseas investments, fell to JPY 2,746.6 billion from JPY 3,520.0 billion, while the secondary income deficit widened slightly to JPY 489.3 billion from JPY 440.8 billion. Meanwhile, the services account deficit expanded sharply to JPY 715.3 billion from JPY 498.8 billion, partly reflecting stronger outbound travel and payments for foreign services.