Japanese surplus dismissed

A RISE in Japan's current account surplus in September was dismissed as another sign of a worsening economy, not an indication of a recovery, in Tokyo today.

The surplus grew 11% to 1.615 trillion yen (£9.1bn) compared with August, and with 1.458 trillion in the previous year. The surplus had been expected to shrink by up to 15%, but calculations were upset by the slowing of trade following the 11 September attacks on the US, which generated the first rise in the surplus in nine months.

As overseas travel slumped 21%, cash taken out of the country by tourists and business travellers plunged, but foreign income generated by overseas investment in bonds and other securities rose by a record amount.

The real picture of Japan's economy was reflected in the continuing fall in the size of the trade surplus, pointed out analysts. This tumbled 17.3% on the back of an 11% fall in exports.