In
contrast, the country's services deficit widened in January-June
from a year earlier as the pandemic kept foreign visitors from
entering the country, the finance ministry data showed,
highlighting the pain the crisis has inflicted on Japan's
once-booming tourism industry.
A separate survey showed sentiment in Japan's services sector
improved in July though an index gauging the outlook worsened,
underscoring the fragile nature of the country's recovery.
"Infection numbers continue to rise, triggering government
requests for people to avoid travelling during the summer
holiday season," analysts at SMBC Nikko Securities wrote in a
research note. "Private consumption may have held up in July but
seen slumping in August."
Japan reaped a current account surplus of 10.47 trillion yen
($94.78 billion) in the first half of this year, up 3.5 trillion
yen from the same period last year, due largely to a 22.2% jump
in exports, the data showed.
Exports of cars, auto parts and chip-making equipment boomed
particularly for those bound to Asia and North America, the data
showed, a sign that manufacturers benefited from strong global
demand for durable goods.
By contrast, Japan saw its services deficit widen by 146.7
billion yen to 2.09 trillion yen in January-June due to a 97.6%
drop in overseas visitors, the data showed.
Japan's economy emerged from last year's pandemic-induced
doldrums thanks to solid exports. But slow vaccine rollouts and
a resurgence in COVID-19 infections have weighed on consumption,
clouding its recovery prospects.
The tourism industry has been hit hard by closed borders and the
government's stay-at-home requests. Many analysts say the Tokyo
Olympic Games, which ended on Sunday, gave little boost to the
economy as no spectators were allowed for most events.
(Reporting by Leika Kihara; Editing by Susan Fenton)
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