August balance of payments: current account surplus of JPY 4,062.0 billion, trade balance swings to a deficit of JPY 687.7 billionWas August a month when Japan "came out ahead" in dealing with other countries?
In the preliminary balance of payments for August released by the Ministry of Finance on October 8, 2026 (Reiwa 8), the current account balance showed a surplus of JPY 4,062.0 billion, a surplus JPY 433.9 billion larger than a year earlier. The trade balance showed a deficit of JPY 687.7 billion, turning from a surplus in the same month a year earlier.
Key points
- Current account balance: surplus of JPY 4,062.0 billion (surplus JPY 433.9 billion larger than a year earlier)
- Trade balance: deficit of JPY 687.7 billion, JPY 801.5 billion worse than a year earlier (swing from surplus to deficit)
- Primary income balance: surplus of JPY 5,133.2 billion, surplus JPY 910.5 billion larger than a year earlier
- Services balance: deficit of JPY 115.8 billion, deficit JPY 150.9 billion smaller than a year earlier
What to do in practice
- Check whether higher import costs will reach your purchases and costs, together with price revision notices from your suppliers
- If you receive dividends or interest from overseas subsidiaries or overseas investments, reflect the effect of yen conversion and the timing of receipts in your cash plan
The government announced a table summarizing money flowing in and out with other countries. In August, Japan received more money from other countries than it paid out. But looking only at buying and selling goods, it bought more than it sold.
- ○Applies: Overall money flowing in and out with other countries
- ○Applies: Money coming in from overseas investments and the like
- ×Does not apply: Difference between exports and imports of goods
- ×Does not apply: Difference in services such as travel and transport
Points
- Across all dealings with other countries, the result was a plus of over 4 trillion yen
- Looking only at exports and imports of goods, imports were about 690 billion yen higher
- Money coming in from companies and investments overseas was large, at over 5 trillion yen
What the words mean
- Current account balance
- A number summing up money flowing in and out with other countries for goods, services, interest and so on
- Trade balance
- The difference between money received from exporting goods and money paid for importing goods
- Ministry of Finance: Ministry of Finance: Summary of Balance of Payments, August Reiwa 8 (Preliminary)
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