Japan current account surplus plunges in May

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Japan’s current account balance was in the black in May, extending the streak to four months, but the surplus plunged by more than 90 percent from a year earlier as higher energy costs hit home.

The current account is the broadest measure of Japan’s trade and investment with the rest of the world.

Preliminary figures show the surplus in May came to 128 billion yen or about 940 million dollars, down nearly 93 percent in yen terms from the same month last year.

The trade deficit was almost 2 trillion yen or about 14 billion dollars.

Soaring prices of crude oil, liquefied natural gas and coal pushed the value of imports up to the highest level since 1996, when comparable figures first became available.

The primary income surplus rose 7 percent, reflecting interest and dividends from investments in overseas securities. Higher dividends from foreign subsidiaries outside Japan and the weaker yen were the main factors.