Japan Current Account: Updated June 19, 2024.

 

Japan logs current account surplus of $13.1 billion in April

Article Source:   https://mainichi.jp/english/articles/20240610/p2g/00m/0bu/005000c

Ideas:

It must be remembered, as the Japanese yen is weak anything overseas will be inflated. Of course its a good situation for Japanese companies as they can get more yen due to the weak yen.

The current account is like a country's bank account, as imports take money out of the current account and exports and other situations such as foreign investments put money into the current account.

Japan, maybe more than other countries depends on its current account to keep the government moving and also to help with current debt situation, which has one of the highest government debt to GDP among OECD countries.

As the Japanese domestic economy, by now, might be too small for most Japanese companies to be profitable, or to get the profits they want, foreign investments or operating in foreign markets keeps Japanese companies profitable.

In today's globalized world, many companies, in all countries, are expanding their business operations.

Again, due to the weak Japanese yen, investments and profits from overseas might be inflated now.

Japan's international goods trade situation might be related to the Japanese car situation, which has suspended manufacturing some cars at this time.

The Japanese car industry, which has maybe 9 car manufacturers, is an significant economic driver in the Japanese economy, which means it helps with economic growth a lot.

The Japanese car industry of 9 car manufacturers, has some car companies that are subsidiaries of the major car companies.

There doesn't seem to be the severe competition in the Japanese car industry that is present or was present in the US car industry, as there seems to be more cooperation than competition.

Japan is a resource-poor country, which means it has to imports almost everything from oil to some food materials, and as such if the Japanese yen is weak, that means imports are gong to cost more, which means importers are going to pass-on their costs to the next in the supply chain.

For exports, the weak Japanese yen, means exporters can get more for their products overseas, which helps the Japanese current account.

Its only natural, due to the weak Japanese yen, and the numbers, there are more foreigners coming to Japan than Japanese going abroad to where ever.

And again, the weak Japanese yen, might be a negative for Japanese travelers who want to travel globally.

Have a nice day and be safe!