12 August 2002, 09:32 Japan H1 current a/c surplus 2nd largest ever as imports slide
TOKYO (AFX-ASIA) - The current-account surplus for the first half to June
widened to the second largest-ever level for a calendar half-year, and broke a
trend of declines registered over the previous two years, a Finance Ministry
official said.
The first half current-account surplus widened to 7.93 trln yen from 5.22
trln a year earlier, a 51.9 pct gain, with the trade surplus reaching 5.84 trln
yen, from 4.21 trln, or a rise of 38.8 pct.
Exports rose only 1.0 pct in the period to 24.04 trln yen but imports fell
around 7.1 pct to 18.20 trln.
"The first half surplus of 7.93 trln yen was the second largest ever, after
the 7.98 trln in the second half of 1998," the official said.
"The surplus rose for the first time in four half-year periods, with a sharp
drop in imports, down 7.1 pct from the year before, and a contraction in the
service-account deficit," he added.
Meanwhile, the monthly current-account surplus rose year-on-year in June for
the ninth consecutive month, marking the eighth largest-ever surplus, helped by
continued strength in exports.
The surplus was also boosted by the fall-off in travelers leaving Japan
during the World Cup.
"The goods and services account saw a stunning 122.7 pct rise on the rising
trade surplus and contraction of the service deficit and travel-account deficit
due to the World Cup, when fewer travelers went abroad," the official said.
"The current-account surplus continues to rise at a modest pace on strong
exports to Asia, with growing uncertainty over the US economy," he said.
"Auto exports continued to be strong, rising 21.7 pct year-on-year, as Asian
countries show a good appetite for Japanese cars, along with the EU and US," he
added.
"This month also saw a one-time increase in exports of ships to the EU, with
a rise of 58.7 pct rise," the official.
"On the other hand, imports dropped 9.0 pct due mainly to a sharp decline in
the value of crude oil imports, falling 12.2 pct, due to weaker demand from
electric utility companies, given the slowing economy," he added.
The ministry said the outlook remains unclear.
"It is hard to predict developments in the current-account and trade
balances because of uncertainty over the world economy and currency movements,"
he said.
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