Japan's digital trade deficit widens to $37bn on Big Tech reliance

Current-account surplus nearly doubles, but companies keep foreign profits overseas

Japanese companies adopting digital technology largely rely on major U.S. platforms. © Reuters

HIROFUMI KANAOKA and KOSUKE TOSHI, Nikkei staff writers

February 9, 2024 06:54 JST

TOKYO -- Japanese companies' growing reliance on foreign tech services led to digital-related imports exceeding exports by 5.5 trillion yen ($36.8 billion) last year, a 16% jump from 2022.

This came even as Japan's overall current-account surplus swelled 93% to 20.63 trillion yen, according to Finance Ministry data released Thursday. The deficit in the trade of goods narrowed as the surge in resource prices ebbed, and inbound tourism fueled a 3.4 trillion yen surplus in travel.