Balance of Payments Overview
The Ministry of Finance announced the preliminary balance of payments for July 2025. The current account showed a surplus of 2,684.3 billion yen, but the surplus decreased by 635.4 billion yen compared to the same month last year.
Current Account Breakdown and Trends
Trade and Services Balance: -884.9 billion yen deficit (155.8 billion yen deficit reduction from previous year)
- Trade Balance: -189.4 billion yen deficit (270.0 billion yen deficit reduction)
- Exports: 9,006.3 billion yen (-4.9% decrease, third consecutive month of decline)
- Imports: 9,195.6 billion yen (-7.4% decrease, fourth consecutive month of decline)
- Services Balance: -695.6 billion yen deficit (114.2 billion yen deficit expansion) Primary Income Balance: 4,074.6 billion yen surplus (534.7 billion yen surplus reduction) Secondary Income Balance: -505.4 billion yen deficit (256.6 billion yen deficit expansion)
Financial Account and Exchange Rate Trends
Financial Account: 2,028.0 billion yen net asset increase
- Direct Investment: 1,075.5 billion yen asset increase
- Portfolio Investment: -3,023.1 billion yen asset decrease
- Other Investment: 3,117.6 billion yen asset increase Exchange Rates (Monthly Average):
- USD/JPY: 146.71 yen per dollar (7.2% yen appreciation from previous year)
- EUR/JPY: 171.64 yen per euro (0.3% yen depreciation from previous year) While the trade balance improved due to import declines exceeding export declines, the overall current account surplus narrowed due to reduced primary income balance surplus.