[Asia Economy Reporter Kwon Jae-hee] Japan's current account surplus in October this year sharply decreased. This is attributed to a decline in automobile production, a major export item, due to a shortage of semiconductor parts.
According to the preliminary balance of payments data for October released by the Japanese Ministry of Finance on the 8th, the current account surplus was 1.1801 trillion yen (approximately 12.2 trillion won). This represents a 39.4% plunge compared to the same month last year.
Thus, the current account surplus has decreased for three consecutive months.
The trade balance surplus within the current account shrank by 82.5% to just 166.7 billion yen. This is the result of reduced automobile exports caused by production disruptions due to the parts shortage and soaring energy prices, which rely on imports.
The services balance recorded a deficit of 575.4 billion yen due to increased overseas copyright royalty payments.
The primary income balance, which supports Japan's current account surplus, rose by 11.5% to 1.7803 trillion yen thanks to increased dividend income from companies engaged in resource development projects.
The primary income balance reflects flows of interest and dividends arising from foreign financial assets such as external financial claims.
Meanwhile, the Japanese Cabinet Office revised its announcement that the real gross domestic product (GDP) for the third quarter (July to September), which included the period of the Tokyo Olympics and Paralympics, decreased by 0.9% compared to the previous quarter.
This is a 0.1 percentage point larger decline than the preliminary figure (-0.8%) announced on the 15th of last month.
The annual real GDP growth rate, calculated assuming this trend continues for a year, was revised from -3.0% to -3.6%.
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