Japan's Current Account Surplus Widened In January

Japan's current account continued to show surplus in January adding to signs of recovery in the world's second largest economy. Japanese exports to China rose to at the fastest pace since 1985, and shipments to the U.S gained giving more support for economic recovery from the worst recession since World War II.

Japan's current account surplus came in at 899.8 billion yen in January compared with a prior surplus of 900.8 billion yen, but it came better than the forecasted 783.9 billion yen. The adjusted current account surplus came at 1712.8 billion yen from 1100.5 billion yen that was revised to 1302.2 billion yen, while forecasts referred to 1249.5 billion yen.

On the other hand, the trade balance surplus recorded 197.2 billion yen compared with a surplus of 631.2 billion yen, while analysts expected a surplus of 152.9 billion yen.

When we look at the situation in the exports sector at the current stage, we will find great progress if we considered the situation in January 2009 when Japan recorded its first current account deficit in 13 years due to a sharp drop in global demand, followed the collapse of Lehman Brothers Holdings Inc.

Today's report showed that shipments to China, Japan's main trade partner, rose at the fastest pace since 1985 in January, while shipments to the U.S gained for the first time in more than two years, indicating recovery in overseas markets.

However, the current account surplus inclined 1.032 trillion yen from a year earlier, which the government considered the second highest jump since comparable data were made available in 1986. Japanese exports climbed 40.6% in January from a year earlier, while the nation's imports rose 7.1%.

Yet, the exports sector's performance is advancing proving that the economy will find more support from that sector after a long absence. The nation's gross domestic product grew an annual 4.6% in the quarter ended December, while it expanded 1.1% from the previous three months, backed by recovery in exports and manufacturing output.

Ecpulse

disclaimer: The content of ecPulse.com and any page in the website contain information for investors/traders and is not a recommendation to buy or sell currencies, stocks, gold, silver & energies, nor an offer to buy or sell currencies, stocks, gold, silver & energies. The information provided reflects the writers' opinions that deemed reliable but is not guaranteed as to accuracy or completeness. ecPulse is not liable for any losses or damages, monetary or otherwise that result. I recommend that anyone trades currencies, stocks, gold, silver & energies should do so with caution and consult with a broker before doing so. Prior performance may not be indicative of future performance. Currencies, stocks gold, silver &energies presented should be considered speculative with a high degree of volatility and risk