Japan posted a 22.5% year-to-date current account surplus for the first half of the year, reaching a record 17.4 trillion yen as a trade surplus from strong semiconductor exports to AI data centers helped lift earnings.

However, higher costs for oil imports and a rise in crude oil prices weighed on the current account, contributing to a deficit in the broader balance.

The primary income balance deteriorated sharply, with a surplus shrinking from 1,444.9 billion yen to 380.1 billion yen as more dividends flowed to foreign holders.

The drop in primary income from securities and direct investment was about 74%, pressured by larger dividend payments to foreign investors.

The shrinking primary income helped drive the overall current account toward negative territory despite other positives.

Inbound visitors declined 2.0% in the first half, while outbound travelers rose 5.1%, signaling softer tourism receipts.

Exchange rate context used for figures shows $1 equals 157.91 yen.

June data published by Japan’s finance ministry, with Reuters providing coverage.

The secondary income balance narrowed the deficit to 108.6 billion yen, improving from the prior period.

The transfers account remained in deficit at about 2.0 trillion yen, improving 37% year over year.

Overall, the current account and balance of payments track Japan’s external earnings and payments across goods, services, income, and transfers as key indicators.

Surplus drivers included higher dividend income from overseas subsidiaries and stronger exports of semiconductors and other electronic components.