Japan logs current account surplus for 23rd straight month in May

Japan logged a current account surplus for the 23rd successive month in May from a month earlier as the yen's comparative strength against the U.S. dollar impacted profits made on foreign investments, while revenue from tourism skyrocketed due to an influx of visitors to Japan, the government said in a report on Friday.

According to the Ministry of Finance, the current account balance which quantifies the international trade of goods, services and investments in and out of the country, stood at 1.81 trillion yen (17.96 billion yen) in the recording period, less than the 1.88 trillion yen logged a month earlier, but higher than median analysts' forecasts.

Goods trade, a key component of the current account balance, registered a surplus of 39.9 billion yen, the finance ministry also said.

Japan's current account surplus is one of the broadest measure of its trade with the rest of the world and the data is keenly eyed by the Bank of Japan and the finance ministry ahead of new potential policy changes or monetary easing or tapering measures.

In Japan the current account surplus increases the nation's net foreign assets by the corresponding amount, and a current account deficit does the reverse.

Both the Japanese government and private payments are included in the calculation and it is called the current account because goods and services are generally consumed in the current period. Endit