Balance of payments - Japan

Balance of payments of Japan without regard to seasonal fluctuations amounted to ¥ 1 809.1 billion in May, higher than analysts' expectations of ¥ 1 750.0 billion. In April, the balance surplus amounted to ¥ 878.5 billion.

The balance of the current account - a figure published by the Ministry of Finance and reflect the balance of the current export and import of goods and services, with the addition of net investment income and current transfers. The current account surplus indicates that the flow of capital into Japan exceeds its outflow. The high value of the index is a positive factor for the Japanese currency.

The balance of foreign trade, published by the Customs Department of Japan, in May amounted to ¥ 39.9 billion lower than the previous value of ¥ 697.1 Bln. This indicator measures the balance between imports and exports. A positive value represents a trade surplus while a negative - trade deficit. Due to the high dependence on exports of Japan, the country's economy is highly dependent on the trade surplus. Confident demand for Japanese exports leads to a positive growth of the trade balance.

Also today, the Bank of Japan released a report on bank lending, which estimates the amount of all outstanding loans in the banking sector. As it became on an annualized basis in June bank lending increased by 2.0%, after rising 2.2% in May.