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  • World
  • Updated: March 09, 2022

Japan Records Largest Current Account Gap Since 2014

Japan Records Largest Current Account Gap Since 2014

Japan registered its biggest current account deficit since the start of 2014 in January.

The Daily Sabah reported on Tuesday that a jump in oil import costs weighed on the shortfall, offsetting gains in investment income, with continuing uncertainty due to the Ukrainian crisis and COVID-19 pandemic.

The current account data also highlighted the dependence of Japan's resource-deficient economy on imports of commodities and raw materials, which caused the trade deficit to widen.

Japan, which is the world's third-largest economy, posted a current account deficit of 1.1887 trillion yen ($10.31 billion) in January versus economists' median estimate of an 880 billion yen deficit in a Reuters poll.

It was also claimed by the Daily Sabah that it was the second straight month of deficit and marked the second-largest deficit under comparable data going back to 1985.

Data also showed declines in foreign tourist arrivals, reducing the travel account to a surplus of just 12.3 billion yen, with the overall services deficit coming to 737.9 billion yen.

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