Japan Posts First Current Account Deficit in 17 Months

Japan’s current account swung to a deficit of JPY 923.0 billion in June 2026 from a surplus of JPY 1,281.8 billion in the same month a year earlier, missing market expectations for a JPY 1,512 billion surplus and marking the first deficit since January 2025. The goods account shifted to a JPY 135.2 billion deficit from a JPY 467.3 billion surplus, as exports rose 16.3%, supported by strong demand for AI-related electronics, but trailed a 24.3% increase in imports, driven by higher crude oil purchases. Meanwhile, the services deficit widened to JPY 228.5 billion from JPY 160.6 billion, while the primary income surplus fell sharply to JPY 380.1 billion from JPY 1,444.9 billion. In contrast, the secondary income deficit narrowed to JPY 108.6 billion from JPY 469.8 billion. Still, Japan logged a JPY 17.43 trillion current account surplus in the first half of fiscal 2026, compared with JPY 14.23 trillion in the same period a year earlier.





