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Japan’s primary income from overseas investment continues to climb thanks to an acquisition spree by Japanese businesses.

Investment powerhouse Japan earns 10% of GDP from overseas income

Primary income surplus tops world ranking again in 2021

YOHEI MATSUO, Nikkei staff writer | Japan

TOKYO -- Japan has come to earn more from abroad thanks to active overseas direct and portfolio investments by Japanese businesses. Income from dividends, interest and other foreign sources topped 50 trillion yen ($378 billion) on an annualized basis in the July-September period, up 2.8 times over the past decade and close to 10% of the nation's gross domestic product. The steady growth is attributable to a series of corporate acquisitions made by Japanese businesses over the past decade or so.

However, not all earnings flow back to Japan. If the money stays at overseas subsidiaries, it will not help boost the Japanese economy.

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