Japan reported on February 14 a record 19.84 trillion yen (163.6 billion dollars) current account surplus for 2006, highlighting lopsided global trade flows that are fueling tensions over the weak yen. The surplus in the current account, the broadest measure of trade in goods and services, was up 8.7 per cent in 2006, the first rise in two years. The major contributor was the income account surplus which grew 20.8 per cent to 13.75 trillion yen due to solid returns on investments by firms and households and repatriated profits. Exports increased 14.3 per cent to an all time high 71.62 trillion yen, helped by the declining value of the Japanese currency.

Even so, the trade surplus shrank 8.5 per cent to 9.46 trillion yen as high oil prices drove up the value of imports by 18.9 per cent to 62.16 trillion yen, also the highest level on record. The current account surplus was boosted from both sides—exports and the healthy income account. This trend will continue for a while.