Japan’s current account surplus reached an all-time high in 2024, driven largely by the yen’s depreciation, which boosted returns on overseas investments. This surge comes amid growing concerns over the impact of US President Donald Trump’s economic policies.
According to data from the Finance Ministry released on Monday, the surplus climbed to ¥29.3 trillion (US$193 billion), the highest level since records began in 1985.
The primary income surplus was a significant contributor to this figure, which includes earnings from foreign investments such as interest and dividends. This category reached a record ¥40.2 trillion, helping offset trade and services deficits.
Economists from SMBC Nikko Securities Inc., led by Koya Miyamae, noted that the weakening yen played a crucial role in boosting investment income. The currency depreciated by more than 10% against the US dollar in 2024, increasing the value of foreign earnings when converted back to yen.
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These financial trends emerge during rising uncertainty in global trade and investment, with Trump pushing for higher foreign investment in the US and escalating tariff tensions. Japan’s trade with its two largest partners, the US and China, could face potential challenges due to ongoing trade disputes.
During a recent meeting, Japanese Prime Minister Shigeru Ishiba committed to expanding Japan’s investment in the US to US$1 trillion. Meanwhile, Trump announced that Japan would be increasing imports of American liquefied natural gas to unprecedented levels.
The two leaders also hinted that Nippon Steel Corp might consider a substantial investment in United Steel Corp instead of acquiring it outright.
