International Policy: August 2026 Balance of Payments Overview
Overview
In the preliminary balance of payments report for August 2026 released by Japan’s Ministry of Finance, the current account recorded a surplus of 4.062 trillion yen, larger than a year earlier, partly because the primary income surplus widened. The trade and services balance posted a deficit of 803.5 billion yen: imports grew more than exports, turning the trade balance to a deficit, while the services deficit narrowed. The financial account recorded a 2.2183 trillion yen increase in net assets, with an increase in net assets from other investment cited among the contributing factors.
Key points
- The current account surplus widened, partly because the primary income surplus increased.
- Imports grew more than exports, and the trade balance turned to a deficit.
- Net assets in the financial account increased by 2.2183 trillion yen.
Overview
The Ministry of Finance's "August 2026 Balance of Payments (Preliminary) Overview" covers the current and financial accounts.
Details
The current account recorded a surplus of 4.062 trillion yen, up 433.9 billion yen year on year. The trade and services balance posted a deficit of 803.5 billion yen, with the deficit widening by 650.7 billion yen. The trade balance recorded a deficit of 687.7 billion yen, a year-on-year shift to a deficit of 801.5 billion yen. Exports were 9.8623 trillion yen (up 1.423 trillion yen, or 16.9%, year on year), rising for the 12th consecutive month. Imports were 10.55 trillion yen (up 2.2245 trillion yen, or 26.7%), rising for the 7th consecutive month.
The services balance recorded a deficit of 115.8 billion yen, with the deficit narrowing by 150.9 billion yen year on year. The primary income balance recorded a surplus of 5.1332 trillion yen, with the surplus widening by 910.5 billion yen. The secondary income balance recorded a deficit of 267.7 billion yen, with the deficit narrowing by 174 billion yen.
The financial account breakdown was: direct investment, minus 1.0164 trillion yen; portfolio investment, 4.9723 trillion yen; financial derivatives, 274.5 billion yen; other investment, 13.0785 trillion yen; and reserve assets, minus 15.0907 trillion yen. Portfolio investment comprised 1.42 trillion yen in equity and investment fund shares, minus 252.4 billion yen in medium- and long-term debt securities, and 3.8047 trillion yen in short-term debt securities. The financial account in the previous month was 1.7626 trillion yen.
On the asset side, outward direct investment increased by 420.9 billion yen, outward investment in equity and investment fund shares increased by 1.385 trillion yen, and outward investment in medium- and long-term debt securities decreased by 198.1 billion yen. On the liability side, inward direct investment increased by 1.4373 trillion yen, inward investment in equity and investment fund shares decreased by 35 billion yen, and inward investment in medium- and long-term debt securities increased by 54.3 billion yen.
In the reference customs trade statistics, the final export value was 10.0433 trillion yen (up 19.3% year on year, with volume up 2.4% and prices up 16.5%); the nine-digit preliminary import value was 11.1552 trillion yen (up 28.0%, with volume up 2.7% and prices up 24.7%). The crude oil price was 101.67 US dollars per barrel (up 40.9%) and 102,687 yen per kiloliter (up 53.1%).
In August, the number of foreign visitors to Japan was 3,098,900 (down 9.6% year on year), while the number of Japanese nationals departing the country was 1,588,600 (down 3.6%). The monthly average dollar-yen exchange rate was 158.74 yen per US dollar, a 7.5% year-on-year depreciation of the yen; the euro-yen rate was 184.13 yen per euro, a 7.2% depreciation of the yen.