Japan's current surplus up, but export growth still weak

Japan’s current surplus up, but export growth still weak

Japan's current account surplus reported its first increase in March during the last three months due to the robust overseas investment income. On the other hand, exports, a key driver for economic growth, continue showing a slight rise. Japan's Finance Ministry disclosed that the country's current account surplus rose 0.5% year on year to Yen 1.85 trillion (around $17.5 billion) in March. For the fiscal year ended March 31, 2005, the current account surplus reached Yen 18.3 trillion, up 5.8% from a year earlier, with the trade surplus, which rose 2% to Yen 13.56 trillion. Exports rose 10.2% year on year to Yen 58.8 trillion in the fiscal year while imports grew 13% to Yen 45.3 trillion. However, March trade surplus alone fell 8.5% to Yen 1.23 trillion. Exports rose 6.5% to Yen 5.51 trillion. However, higher prices of oil and iron ore continued increasing the value of imported goods by 11.8% to Yen 4.28 trillion. Analysts expect exports growth, which accounts 10% of the Japan's gross domestic product, to remain weak in the coming months on the back of stagnant demand for digital products in Asia.