Current account surplus boosts outlook for Japan

JAPAN&rsquo;S current account surplus fell by a smaller-than-expected 48.8 per cent in March from a year earlier, a sign that export demand may be stabilising after a slump in the wake of the financial crisis.<br /><br />The country is enduring its worst recession since World War Two but exports and output have shown some signs of recovery, adding to hopes the global downturn may be nearing a bottom.<br /><br />Japan logged a current account surplus for the second straight month in March, of 1.49 trillion yen (&pound;10.2bn), after it sank to a record deficit in January, Ministry of Finance data showed.<br /><br />&ldquo;As overseas demand has bottomed out, the trade balance will recover moderately albeit at a low level,&rdquo; said Junko Nishioka, chief Japan economist at RBS Securities.<br /><br />&ldquo;Japan will face fewer risks of a current account deficit.&rdquo;