Japan's current account surplus down 52.5 percent

Japan's current account surplus in August shrank 52.5 percent from a year earlier as the country's spending on oil imports soared, the Finance Ministry said Wednesday.

The surplus in the current account, the broadest measure of Japan's trade with the rest of the world, came at 988.8 billion yen ($9.7 billion), marking the sixth consecutive year-on-year fall.

The current account measures trade in goods, services, tourism and investment. It is calculated by determining the difference between Japan's income from foreign sources against payments on foreign obligations and excludes net capital investment.

Exports in August edged up 0.9 percent to 6.72 trillion yen ($65.6 billion), while imports jumped 20.2 percent to 6.96 trillion yen ($68 billion) in the month.

Due to a surge in import oil costs, Japan incurred a trade deficit worth 236 billion yen ($2.3 billion) in August, its first monthly trade deficit since January 2006. The ministry said it was also the largest trade deficit on record.

Oil alone accounts for 25 percent of Japan's total imports. The ministry said oil imports in August soared 64.2 percent year-on-year. Japan is dependent on imports for nearly all of its oil supply.

Japan's exports to Asia rose 6.6 percent in August, but U.S.-bound shipments plunged 21.8 percent due to sluggish demand in the world's largest economy.

The August figure follows a 17.3 percent decline in the July current account surplus as a higher import bill dampened a rebound in exports.

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