Japan’s current account surplus rose to JPY 2,988.9 billion in July 2026, up more than 15% from a year earlier and above the JPY 2,870 billion market forecast. The result marked the first surplus in two months and was driven by a JPY 4,289.6 billion primary income surplus, as dividend payments from overseas subsidiaries and interest income increased. A weaker yen also raised the yen value of overseas receipts. The goods balance recorded a JPY 399.9 billion deficit, with exports reaching JPY 11,256.1 billion and imports JPY 11,656 billion. Automobile shipments to the United States and Europe and semiconductor equipment exports to China supported exports, while higher crude oil prices and Middle East tensions pushed imports up faster. Japan’s current account surplus totaled JPY 17.43 trillion in the first half of 2026, compared with JPY 14.23 trillion a year earlier, highlighting the economy’s growing reliance on investment income rather than trade. Overseas earnings from Japan’s expanding subsidiaries may continue supporting the surplus and the yen, while elevated energy costs and geopolitical risks remain risks to the trade balance.