Japan posted a 92.3 billion yen (US$584.5 million) current account deficit in June, its first shortfall in 17 months, as higher dividend payments to overseas investors and surging oil import costs weighed on the country’s external balance.
According to Reuters, the result sharply missed economists’ expectations for a 1.51 trillion yen surplus and reversed a 1.28 trillion yen surplus recorded a year earlier, according to the preliminary June and first-half balance-of-payments data released by Japan’s Finance Ministry on Aug 10.
A major drag came from Japan’s primary income balance, which includes earnings from overseas securities and direct investments. The balance plunged 74% to 380 billion yen as Japanese companies paid larger dividends to foreign investors.
Higher oil import costs also pushed Japan’s trade balance into deficit during the month, adding further pressure to the current account.
Despite the June setback, Japan’s broader external position remained strong in the first half of 2026.
The country recorded a record 17.4 trillion yen current account surplus for the January-June period, up 22.5% from a year earlier, supported by strong semiconductor exports linked to demand from artificial intelligence data centres.
