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.