The nation's current account surplus expanded in fiscal 2002 for the first time in four years on the back of brisk exports to other parts of Asia, the Finance Ministry said Wednesday in a preliminary report.
But the surplus shrank in March, marking the first drop in two months. Exports to the United States have declined in recent months amid the economic slowdown there, offsetting a rise in exports to Asia.
A jump in imports also helped reduce the March surplus. The spurt was due to high oil prices before and during the U.S.-led war in Iraq, which resulted in a smaller surplus in the month's trade balance -- exports minus imports, the ministry said.
The current account is the broadest gauge of trade in goods and services, and includes cross-border income.
The surplus over the fiscal year, which ended March 31, stood at 13.34 trillion yen, up 12 percent from fiscal 2001.
Exports grew 8.5 percent year-on-year to a record 50.11 trillion yen, supported by exports of information technology-related electronics components to Asia and automobiles to broader regions.
Imports increased 3.6 percent to 38.55 trillion yen -- also a record high -- mainly due to a surge in oil prices in the latter half of the fiscal year amid worries over the military campaign in Iraq. The average oil price for the fiscal year was 21,023 yen per kiloliter, up 12.8 percent from the previous fiscal year and the first rise in two years.
As for March, the current account surplus shrank 26.6 percent from a year earlier to 1.6 trillion yen.
Of the current account, the deficit in services fell 21.3 percent to 239.7 billion yen, because the number of Japanese tourists heading overseas dropped by 12.4 percent from a year earlier due to the war in Iraq and worries over terrorism elsewhere.