TORONTO, August 9, 2017 /PRNewswire/ --
Onex Busan Financial have recently commented on the Japanese Ministry of Finance as they announced yesterday that the current account surplus has reached 934.6 billion yen ($8.44 billion) against the expected amount of 860.5 billion yen. In May, this indicator showed a surplus of 1,653.9 billion yen.
Japan notes a current account surplus for the 36th month in a row, mainly due to profits from investments abroad and a positive trade balance in contrast to a deficit in May, while the trade balance reached a surplus of 518.5 billion yen, way far from the expected 571.5 billion yen, and after May's deficit of 115.1 billion yen.
In annual terms, exports rose 9.0% to 6.370 trillion yen, and imports soared 15.1% to 5.852 trillion yen.
For the first half of this year, the current account surplus was 10.510 trillion yen, which is +0.3% in annual terms. This is the highest level since 2008 in terms of half-year periods.
The key support came from the trade surplus after a deficit recorded last month. Also, the overseas investments of Japan, expressed by the primary income surplus indicator, consolidated the current account surplus.
With regard to trade, Japan has promised to ease protectionism and signed a preliminary trade agreement with the EU on July 6. The key points of the deal refer to growth in exports of Japanese cars to Europe and European foods to Japan.
Prime Minister of Japan, Shinzo Abe, considers the agreement as the creation of "the world's largest free, advanced, industrialized economic zone."
From the European side, Donald Tusk, the president of the European Council, commented about the deal: "Although some are saying that the time of isolationism and disintegration is coming again, we are demonstrating that this is not the case."
Speaking about the Japanese investments overseas, the head of research at Onex Busan Financial Namgung Kwan, said: "The primary income surplus will continue to support the current account surplus also because Japanese corporations tend to focus on M&As overseas."
"The recent agreement with the European Union, even if at a preliminary level, will have its impact on the economic recovery," added Oliver Saunders, Head of Corporate Trading at Onex Busan Financial.
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SOURCE Onex Busan Financial