International Policy: September 2026 Balance of Payments (速報)
Overview
In the Ministry of Finance’s preliminary balance of payments report for September 2026, the current account posted a surplus of 2 trillion 3,723 billion yen, down 2 trillion 35 billion yen from the same month a year earlier, mainly because the primary income surplus narrowed. Imports grew more than exports, turning the trade balance to a deficit of 187.5 billion yen. The services deficit also widened. The financial account recorded a net acquisition of assets of 3 trillion 4,133 billion yen, due in part to an increase in net assets from portfolio investment.
Key points
- The current account recorded a surplus of 2 trillion 3,723 billion yen, but the surplus narrowed year on year.
- The increase in imports exceeded the increase in exports, turning the trade balance to a deficit.
- Net assets in the financial account increased by 3 trillion 4,133 billion yen.
- The primary income balance posted a surplus of 3 trillion 5,535 billion yen, but the surplus narrowed.
Overview
The Ministry of Finance's preliminary overview of the balance of payments for September 2026 presents the current and financial account balances for the month.
The current account totaled 2 trillion 3,723 billion yen, down 2 trillion 35 billion yen year on year, narrowing the surplus. The narrowing of the primary income surplus was cited as one factor.
The financial account totaled 3 trillion 4,133 billion yen, up from 2 trillion 1,494 billion yen in the previous month. Net assets increased by 3 trillion 4,133 billion yen in September, partly due to an increase in net assets from portfolio investment.
Details
The trade and services balance recorded a deficit of 644.5 billion yen, with the deficit widening by 636.9 billion yen year on year. The trade balance posted a deficit of 187.5 billion yen, a year-on-year swing of 434.1 billion yen into deficit. Exports were 10 trillion 7,283 billion yen, up 1 trillion 2,146 billion yen (12.8%) year on year and marking a 13th consecutive month of increase. Imports were 10 trillion 9,159 billion yen, up 1 trillion 6,487 billion yen (17.8%) and marking an eighth consecutive month of increase. The services balance recorded a deficit of 456.9 billion yen, with the deficit widening by 202.8 billion yen year on year. The widening deficit in “other services” was cited as one reason.
In the customs-based trade statistics provided for reference, finalized exports were 10 trillion 9,539 billion yen, up 1 trillion 5,490 billion yen (16.5%) year on year; volume rose 1.7% and prices rose 14.5%. Semiconductor and other electronic components, automobiles, and semiconductor manufacturing equipment increased, while exports to Asia and North America rose by region. The preliminary nine-digit import figure was 11 trillion 5,103 billion yen, up 1 trillion 8,278 billion yen (18.9%) year on year. Volume fell 1.6% and prices rose 20.8%. Crude oil, semiconductor and other electronic components, and liquefied natural gas increased, while imports from Asia and North America rose by region.
The primary income balance posted a surplus of 3 trillion 5,535 billion yen, with the surplus narrowing by 1 trillion 3,212 billion yen year on year. The narrowing of direct investment income surpluses was cited as a factor. The secondary income balance recorded a deficit of 536.8 billion yen, with the deficit widening by 45.3 billion yen year on year.
The financial account breakdown was direct investment, 523.7 billion yen; portfolio investment, 3 trillion 9,228 billion yen; financial derivatives, a deficit of 618 billion yen; other investment, a deficit of 671.3 billion yen; and reserve assets, 256 billion yen. Portfolio investment comprised 6 trillion 7,015 billion yen in equity and investment fund shares, a deficit of 7 trillion 2,040 billion yen in medium- and long-term debt securities, and 4 trillion 4,253 billion yen in short-term debt securities.
Resident investment included an increase in external assets of 2 trillion 1,507 billion yen from direct investment abroad, an increase of 454.5 billion yen from investment in foreign equities and investment fund shares, and a decrease of 1 trillion 5,705 billion yen from investment in foreign medium- and long-term debt securities. The report noted Japanese companies' subscriptions to capital increases by overseas companies, net purchases by investment trust management companies and others, and net sales of medium- and long-term debt securities by banks and others.
Investment by nonresidents included an increase in liabilities of 1 trillion 6,269 billion yen from direct investment in Japan, a decrease of 6 trillion 2,470 billion yen from investment in Japanese equities and investment fund shares, and an increase in liabilities of 5 trillion 6,335 billion yen from investment in Japanese medium- and long-term debt securities. The report cited borrowing from overseas affiliates, net sales of shares by banks and other entities, and net purchases of Japanese government bonds and other securities.
As reference figures, crude oil prices were 100.37 U.S. dollars per barrel (up 37.4% year on year) or 99,432 yen per kiloliter (up 46.6%). The number of foreign visitors to Japan was 3,103,700 (down 5.0%), and the number of Japanese travelers departing the country was 1,481,900 (up 6.3%). The monthly average exchange rates were 156.41 yen per U.S. dollar (compared with 147.94 yen in the same month a year earlier, a 5.7% depreciation of the yen) and 180.06 yen per euro (compared with 173.53 yen, a 3.8% depreciation of the yen).