TOKYO (AFX-ASIA) - An official at the Ministry of Finance said the current account surplus in calendar 2001 declined 12.0 pct to 11.06 trln yen; the first time it has fallen since 1998. The official said the decline of the current account surplus was due to the decline in the surplus of goods and services offsetting the income surplus increase. Income surplus increased to a record high of 8.82 trln yen, compared with 6.21 trln yen a year earlier, the official said. The surplus of goods and services fell 56.9 pct to 3.21 trln yen in 2001, dragged down by a sharp fall in the trade surplus during the period that was in turn caused by an IT-related export slump and yen weakness, the official said. The trade surplus fell 32.2 pct to a record low of 8.52 trln yen in the period under the current calculation standard, the ministry said. Exports fell 5.9 pct to 46.5 trln yen, while imports rose 3.0 pct to a record-high 38.0 trln yen in the period. The official attributed the rise in imports to yen weakness, adding that the average dollar/yen level in the period was 121.58, compared with 107.78 a year earlier. The official did not comment on the ministry's view of the outlook for the current account surplus. "A majority of private institutions predict current account surplus will start to rise again after hitting its bottom in the year to March 2002 period. In addition, the government also expects the surplus will recover after the end of fiscal 2001," the official said. The official added that exports have started to show signs of a recovery. "Of course exports are influenced by world economic conditions, but, currently, the ministry sees that exports have started to show signs the decline will stop," the official said.