1. At the same time, Japanese continued to travel and spend overseas in greater numbers, supporting the services deficit. 2. Japan has consistently run trade surpluses and service deficits. 3. Payments from overseas to Japanese companies involved in research projects also contributed to the fall in the services deficit, the ministry said. 4. The Finance Ministry predicted this morning the current account surplus will shrink from here on as the trade surplus contracts and the services deficit starts expanding again. 5. The largest contributor to the services deficit is from those traveling abroad. 6. The largest contributor to the services deficit is from Japanese traveling abroad. 7. The services deficit was nearly offset by the repatriation of portfolio investment income. 8. The services deficit will expand partly because Japanese tourists continue to spend money overseas, a ministry official said. 9. Yet the net outflow of funds, combined with the services deficit, will not be enough to offset the huge trade surplus, economists said. 10. Further expanding the service deficit was increased payments for overseas construction projects by Japanese companies, which turned the balance in the construction sector into a deficit in April. |