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Japan Posts Current Account Surplus as Trade Turns Positive

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Japan recorded a 36th consecutive current account surplus in June,  supported by returns on overseas investments and a trade balance that returned to positive territory.

The return of a trade surplus after a deficit in May supported the current account. The benefits from Japan’s overseas investments, shown as the primary income surplus, anchored the account, but Japanese companies paying dividends overseas in June did somewhat reduce the primary income surplus during the month. On the trade front, Japan has vowed to fight protectionism, and reached a preliminary trade agreement with the European Union in July.