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Account and Trade Surplus

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Why has Japan's current account surplus been smaller than its trade surplus in recent years? Explain why Japan's official reserve transactions balance has been close to zero.

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Account and Trade Surplus is acknowledged.

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Why has Japan's current account surplus been smaller than its trade surplus in recent years?

Let's first talk about the current account surplus. The main reason for the increase in Japan's current account surplus is the accumulation of external financial assets. Japan is a net importer of services. During 2006, Japan recorded net assets of 1.8 trillion USD in its international ...

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Umut Oltulu, MBA
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  • BSc, Dokuz Eylul University
  • MBA, Texas A&M University-Kingsville
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