Japan's current account surplus jumped by six times in April as a surge in exports on year saw the trade balance return to the black as demand bounced back following the coronavirus pandemic-induced economic downturn, the government said in a report on Tuesday. According to the Finance Ministry, the current account surplus here stood at 1.32 trillion yen (12.05 billion U.S. dollars) in the recording month, with Japan logging a surplus for the 82nd straight month. According to the preliminary figures released by the ministry, the primary income, which reflects returns on investments made overseas, leapt 7.3 percent to 2.18 trillion yen (19.90 billion U.S. dollars). Exports surged 38 percent owing to robust demand for cars and auto-parts from China and the United States, while imports gained 11.3 percent due to an increase in crude oil and petroleum products, the department said.
Japan's long-running surplus in the current account, one of the widest gauges of international trade, is underpinned by solid income from foreign investments and is one of the broadest measure of its trade with the rest of the world. The data is keenly eyed by the Bank of Japan (BOJ) and the Finance Ministry ahead of new potential policy changes or monetary easing or tapering measures. In Japan, the current account surplus increases the nation's net foreign assets by the corresponding amount, and a current account deficit does the reverse. Both the Japanese government and private payments are included in the calculation and it is called the current account because goods and services are generally consumed in the current period.