Japan's Current Account Surplus Reaches Record 29.26 Trillion Yen in 2024

Japan's current account surplus reached a historic 29.26 trillion yen ($193 billion) in 2024, marking the highest level since 1985, driven by robust returns on foreign investments amid a weaker yen. This surplus represents a 29.5% increase from the previous year, primarily fueled by a record primary income surplus of 40.2 trillion yen from overseas investments. Despite a goods trade deficit of 3.9 trillion yen, which narrowed significantly, exports saw a rise of 4.5% due to strong demand for electronics and vehicles. Additionally, Japan experienced a travel surplus of 5.9 trillion yen, supported by a surge in foreign tourists. Economic analysts note that the composition of Japan's trade dynamics is shifting, with offshore investments generating more income than domestic exports. However, pressures from the U.S. regarding trade balances and investment expectations pose challenges for Japan's future economic landscape.