Japan Posts First Current Account Deficit in 17 Months

2026-08-10 00:11 By Farida Husna 1 min. read

Japan’s current account swung to a deficit of JPY 923.0 billion in June 2026 from a surplus of JPY 1,281.8 billion in the same month a year earlier, missing market expectations for a JPY 1,512 billion surplus and marking the first deficit since January 2025.

The goods account shifted to a JPY 135.2 billion deficit from a JPY 467.3 billion surplus, as exports rose 16.3%, supported by strong demand for AI-related electronics, but trailed a 24.3% increase in imports, driven by higher crude oil purchases.

Meanwhile, the services deficit widened to JPY 228.5 billion from JPY 160.6 billion, while the primary income surplus fell sharply to JPY 380.1 billion from JPY 1,444.9 billion.

In contrast, the secondary income deficit narrowed to JPY 108.6 billion from JPY 469.8 billion.

Still, Japan logged a JPY 17.43 trillion current account surplus in the first half of fiscal 2026, compared with JPY 14.23 trillion in the same period a year earlier.



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Japan Posts First Current Account Deficit in 17 Months
Japan’s current account swung to a deficit of JPY 923.0 billion in June 2026 from a surplus of JPY 1,281.8 billion in the same month a year earlier, missing market expectations for a JPY 1,512 billion surplus and marking the first deficit since January 2025. The goods account shifted to a JPY 135.2 billion deficit from a JPY 467.3 billion surplus, as exports rose 16.3%, supported by strong demand for AI-related electronics, but trailed a 24.3% increase in imports, driven by higher crude oil purchases. Meanwhile, the services deficit widened to JPY 228.5 billion from JPY 160.6 billion, while the primary income surplus fell sharply to JPY 380.1 billion from JPY 1,444.9 billion. In contrast, the secondary income deficit narrowed to JPY 108.6 billion from JPY 469.8 billion. Still, Japan logged a JPY 17.43 trillion current account surplus in the first half of fiscal 2026, compared with JPY 14.23 trillion in the same period a year earlier.
2026-08-10
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Japan’s current account surplus increased to JPY 3,968.3 billion in May 2026 from JPY 3,320.5 billion in the same month a year earlier, though it fell short of market expectations of JPY 4,121 billion. The goods account swung to a marginal surplus of JPY 0.07 billion from a JPY 497.1 billion deficit, as export growth (14.7%) outpaced import growth (8.1%). Meanwhile, the primary income surplus increased to JPY 4,275.6 billion from JPY 4,180.2 billion. The secondary income deficit narrowed to JPY 304.0 billion from JPY 493.5 billion. By contrast, the services account slipped into a marginal deficit of JPY 0.1 billion, reversing from a JPY 130.9 billion surplus a year earlier.
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Japan’s current account surplus increased to JPY 3,907.8 billion in April 2026 from JPY 2,370.0 billion in the same month a year earlier, exceeding market expectations of JPY 3,137 billion. The goods account surplus surged to JPY 395.7 billion from a tiny figure in the prior year, as export growth (13.9%) outpaced imports (9.5%). Also, the primary income surplus widened to JPY 4,210.0 billion from JPY 3,649.8 billion. Meantime, the services account deficit narrowed sharply to JPY 416.0 billion from JPY 725.9 billion. Also, the secondary income deficit decreased to JPY 281.8 billion from JPY 553.1 billion.
2026-06-08