Japan Current Account Surplus Soars 154.9%

Japan’s current account surplus more than doubled in May, driven by global demand for the country’s exports and a drop in consumer spending at home. The surplus rose 154.9% to $8.02 billion from the same month last year, the Ministry of Finance said. The surplus was within the 168.5% increase economists had forecast for the current account, which is a nation’s broadest measure of trade in goods and services. Merchandise trade, which accounts for three-quarters of the current account, led the expansion. The current account surplus rose for the fourth time in the last five months, and economists expect it to soar through at least the end of the year because it reflects exchange rates six to nine months earlier. The 20-day trade surplus for June points to another current account surplus in that month. The trade surplus for the first 20 days of June surged 129%.