Gulf Aid Shrinks Japan’s Surplus: Japan’s contribution...

Gulf Aid Shrinks Japan’s Surplus: Japan’s contribution to the Gulf War effort almost halved its balance of payments surplus in March, but the underlying trend is still for the surplus to widen. The Ministry of Finance said the current account surplus shrank 46.5% to $4.31 billion from March last year. Economists were quick to point out the payment is a one-time event and that Japan’s current account is showing signs of expansion. The account measures merchandise trade, “invisible goods” and services such as tourism, and transfer payments. It was this last category that trimmed the surplus.