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Last Updated: Wednesday, 14 February 2007, 08:37 GMT
Japan sees account surplus shrink
Japanese man looking at flat screen TV
Exports will continue to drive Japanese economic growth
Japan's current account surplus unexpectedly fell in December from the year before, but exports showed signs of continued economic strength.

The current account surplus was 0.5% lower in December at 1.78 trillion yen (�7.3bn), marking its first fall in six months, government data shows.

The surplus fell as Japanese firms paid higher dividends overseas.

However, the trade surplus increased by 15.2% in December, as exports hit 6.6 trillion yen.

Analysts said the latest data would have little impact on interest rate decisions.

However, they also said the strong export performance indicated that Japanese firms would continue to fuel economic growth.

The Bank of Japan kept rates on hold to the surprise of many earlier this year, but is due to meet again next week.

Analysts remain split over which way the Bank will move.


SEE ALSO
Japanese consumer spending slips
30 Jan 07 |  Business
No alteration in Japanese rates
18 Jan 07 |  Business
Japan interest rates stay on hold
19 Dec 06 |  Business
Japanese bosses show confidence
15 Dec 06 |  Business
Japanese economy suddenly slows
08 Dec 06 |  Business

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