Japan faces 1st current-account deficit in 42 years if oil hits $130

 

Japan faces 1st current-account deficit in 42 years if oil hits $130

TOKYO -- Japan's current-account balance is poised to dip into the red on an annual basis for the first time in decades should energy prices climb further, according to a Nikkei estimate.
 
If crude oil surges back to $130 a barrel and the yen hovers at 120 against the dollar, Japan could face a current-account deficit of 16 trillion yen, or $130 billion, for fiscal 2022, calculations show. The costlier oil imports are seen outweighing the boost to exports from a weak yen.
 
Japan last logged a current-account deficit for a calendar year in 1980, with no fiscal year deficit on record going back to 1996.