INSUBCONTINENT EXCLUSIVE:
This marks the highest level since records began in 1996.This surge highlights a strategic shift by Japanese companies amid rising
geopolitical tensions and economic uncertainty in China
Despite a weaker yen averaging 151.48 to the dollar in 2024, which increased investment costs, equity capital investments jumped nearly
60%.This surge in investments drove much of the growth
Investments Hit Record High Amid China Slowdown
trillion yen, reflecting a pivot toward Southeast Asia
This was driven by an 11% rise in primary income to 40.21 trillion yen.Trade deficits narrowed for goods and services, while a travel
surplus reached an all-time high of 5.9 trillion yen due to increased spending by foreign tourists in Japan
However, a widening digital services deficit of 6.6 trillion yen offset these gains.Despite robust outward investments, inward FDI to Japan
fell by 13% to 2.56 trillion yen, far below its peak of 6.7 trillion yen in 2020
This imbalance underscores challenges Japan faces in attracting foreign capital while its companies look abroad for growth
They are prioritizing stable markets and diversifying away from riskier regions like China.
