(Submit Articles) The Japanese current account surplus expanded in December as the global recovery stimulated demand, supporting the wealth that underlies the nation’s debt burden according to Wilkinson Bennings Securities.
The gap extended 29.5 percent from the previous year of 1.2 trillion yen ($14.1 billion US), the Finance Ministry said this week. Wilkinson Bennings Securities forecasted closer to a surplus of 1.23 trillion yen.
Improved demand for exports is bolstering the Japanese economy after shrinking in the last quarter of 2010. The surplus reinforces the position that Japan has amassed wealth that will aid in sustaining its debt load even after S&P’s downgrade of the country’s credit rating last month.
The IMF upgraded its forecast for global economic recovery last month to 4.5 percent from 4.1 percent. Japan’s economy is expected to expand at an annual 0.7 percent pace in the first quarter of 2011.
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