Japan’s current account surplus dips as overseas earnings weaken

Japan’s current account surplus dips as overseas earnings weaken
/ Pexels - Szymon Shields
By bno - Taipei Office October 9, 2025

Japan’s current account surplus eased in August, falling 4.8% year on year to JPY3.78 trillion ($24.9bn), as softer returns on overseas investments weighed on overall income, according to preliminary figures released by the Ministry of Finance and reported by Kyodo News.

The surplus nevertheless remained in positive territory for the seventh consecutive month and was the second-highest on record for August, underscoring Japan’s continued strength in external balances despite weaker investment inflows.

The primary income account, which tracks returns from foreign holdings, slid 11.5% to JPY4.30 trillion, Kyodo added, reflecting a downturn in dividend income from subsidiaries abroad, notably within the financial, insurance and automotive sectors.

Japan’s goods trade swung back into surplus, posting JPY105.9bn compared with a deficit of JPY385.6bn a year earlier. Imports meanwhile fell 6% to JPY8.25 trillion, aided by lower crude oil prices, while exports edged down 0.4% amid a slowdown in car shipments to the United States.

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