Japan’s current account surplus rapidly fell in December after hitting a record high in the previous month, the data from the finance ministry on Wednesday showed, highlighting the impact of continually trade deficits and the weakening yen on the country’s once-solid balance of payments.
The decline in Japanese yen last year weighed heavily on import costs, including oil and commodities that have already increased due to Russia and Ukraine’s war, creating significant pressure on Japan’s overall current and trade accounts.
Japan’s current account surplus was 33.4 billion yen ($255.51 million) in December, significantly reduced from the surplus of 1.8 trillion yen of the previous month, which was driven by revenue from investment in securities and Japan’s massive investment overseas.
The latest number fell by 334 billion yen from the previous year and undershot economists’ median expectations of 95.4 billion yen in surplus, according to a Reuters poll.
