Data Sheds Light on Japan’s Economic Risks

Japan posted its smallest current account surplus on record last year, throwing the spotlight back on Tokyo’s ability to service its huge debt and exposing a danger point in an economy starting to find its feet after years of underperformance.

The world’s third-biggest economy sped past many of its Group of seven counterparts in 2013 spurred by an aggressive mix of fiscal and monetary expansionary policies.

But a deteriorating external position has cast a shadow on the recovery as policy makers worry that the economy may falter if exports do not regain momentum.

Reuters

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