TOKYO (AFP) - Japan said its current account surplus in September rose 9.3 percent from a year earlier on robust exports to Asia but economists warned slower global growth and high oil prices could trim the figures going forward.
The current account surplus, which measures the flow of goods, services and investment income, and other financial transfers, totalled 1.7 trillion yen (16.6 billion dollars) in September.
The finance ministry said the surplus for the six months to September was up 12.9 percent at 9.37 trillion yen, a record high,.
"The current account surplus grew thanks to strong exports. Of all regions, Asia-bound exports were particularly strong," a ministry official said Wednesday before adding the September surplus marked the 15th consecutive monthly increase.
The September trade surplus alone rose 11.6 percent to 1.44 trillion yen, with exports up 11.9 percent to 5.18 trillion yen and imports up 12 percent to 3.75 trillion yen.
Japanese exports to Asia, which account for 50 percent of the total, jumped 19.3 percent while US-bound shipments, which make up 20 percent, edged up 5.5 percent with exports to the European Union rising 11.5 percent.
Despite the record April-September figures, some economists expressed concerns over the sustainability of the rapid growth if the Chinese and US economies slow and global demand for information technology (IT) products flattens out, as it is expected to next year.
"Production adjustments, triggered initially by the slowdown in overseas demand for IT products, are now spreading to other sectors," said NLI Research Institute economist Taro Saito.
For the six months to September, the trade surplus rose 22.4 percent to 7.37 trillion yen despite the yen's 7.0 percent appreciation against the dollar.
Exports increased 13.1 percent to a record 29.23 trillion yen in the six months, with Asia up 19.8 percent, led by a 21.8 percent gain surge in shipments to China. Exports to Europe rose 9.1 percent, with the United States up only 2.1 percent.
"Judging from the continued solid demand for base materials in China, any adjustments that the Japanese economy will face are expected to be mild and relatively short," said Mizuho Securities economist Osamu Katano.
"Once the ongoing adjustment in the IT sector is completed, net exports are likely to re-emerge as a growth driver," Katano added.
Imports for the six-month period rose 10.3 percent to 21.86 trillion yen, also a record high.
Significantly, Japan attracted international fund inflows of 7.67 trillion in the six months, up from inflow of 5.81 trillion a year earlier and reflecting the country's strong investment appeal.
11/10/2004 - 12:19 GMT - AFP