Japan's current account surplus grew 7.4 percent in October from a year earlier to 1.34 trillion yen for the 16th straight month of increase, due to an all-time-high in exports for the reporting month, the Finance Ministry said Thursday.
The balance of trade in goods and services posted a surplus of 816.4 billion yen, up 11.5 percent, despite a widening services trade deficit, the ministry said in a preliminary report.
The surplus in merchandise trade rose 10.1 percent to 1.39 trillion yen, with exports up 11.9 percent to a record 5.22 trillion yen on brisk demand from China and other Asian economies.
Imports climbed 12.5 percent to 3.83 trillion yen as a 42.7 percent year-on-year jump in crude oil prices pushed up overall import prices.
Private-sector economists expect the nation's current account balance to keep posting surpluses, but predicted its size will shrink because import prices will probably remain high.
"Import prices of crude oil and other commodities are expected to stay at high levels throughout the winter, when people need oil for heating," said Hitoshi Asaoka, an economist at Mitsubishi Research Institute Inc.
Asaoka also said exports will probably decline in volume due to credit-tightening measures in the United States and China, along with a strong yen against the dollar.
A stronger yen tends to restrict Japanese exports by making them less competitive overseas and reducing the value of exporters' repatriated earnings.
According to the report, the services trade balance posted a deficit of 576.4 billion yen, up 8.2 percent for the second straight month of increase.
The deficit stemmed partly from a 20.0 percent rise to 1.15 million in the number of Japanese traveling abroad in October, the highest number on record for the month, a ministry official said. Overseas travel was affected a year earlier by jitters over the SARS epidemic.