Business

Japan's fiscal 2020 current account surplus projected to top ¥20 trillion

JIJI

The current account surplus is projected to grow to ¥20.6 trillion in fiscal 2020 from ¥18.6 trillion this fiscal year, according to a forecast Tuesday by the Japan Foreign Trade Council.

If the projection holds, the surplus would rise above ¥20 trillion for the first time in three years.

The services trade deficit is expected to shrink thanks to a rise in inbound tourism on the back of the 2020 Tokyo Olympics and Paralympics, the council said. Also, exports of electronic components are seen hitting bottom and recovering.

The council expects the trade deficit to fall by half to ¥1.4 trillion from ¥3.03 trillion.

A slump in demand for information technology-related materials will likely bottom out, the council said. High value-added goods made in Japan are expected to attract further demand, possibly leading to growth in machinery exports, according to the outlook.