Deep Dive:The Balance of Payments:Solidly in surplus

Impact

The current account comprises the goods, services and income balances (netpayments on assets, e.g. bond interest payments). Asset movements are thecapital account. Inbound tourism is an export of services.

As shown below, Japan’s goods trade balance is returning to its pre-March 2011triple-disasters (earthquake, tsunami, Fukushima) level. The current accountsurplus is exceeding its 2010highs as the service/income balance expands.

The return to a sustained goods trade surplus from the beginning of 2016hascoincided with a strong appreciation in the Yen.