Japan Records 29-Trillion-Yen Current Account Surplus In 2024

Japan posted a current account surplus of 29.26 trillion yen ($193 billion) in 2024, a record high, driven by strong returns on foreign investments, a weaker yen, and a declining trade deficit, government data showed, Kyodo News reported.

The Japanese yen averaged 151.48 per U.S. dollar in 2024, 7.8% weaker than the previous year.

The current account surplus, a key indicator of international trade and investment flows, grew 29.5% year-over-year, marking its second consecutive annual increase and the highest surplus recorded since comparable data became available in 1985, the Finance Ministry stated.

Primary income, which measures earnings from overseas investments, surged 11.3% from the previous year to 40.21 trillion yen, fueled by higher returns from foreign subsidiaries in the financial, retail, and automotive sectors, the ministry’s preliminary report noted.

Japan’s primary income gains have been bolstered by foreign direct investments from domestic firms and overseas dividend income, with the yen’s depreciation further inflating their value.

The Japanese yen averaged 151.48 per U.S. dollar in 2024, 7.8% weaker than the previous year.