How Japan Overcame  its Balance of Payments  Troubles

Insight into the Subject | 国際収支の試練をいかに乗り越えたのか

How Japan Overcame its Balance of Payments Troubles

The international balance of payments is divided into “current balance,” “balance of capital accounts,” and “financial accounts." The majority of the current balance is in “trade balance” made by calculating the balance of exports and imports, and the balance on services, such as income from travel and patent royalties. The balance of payments post World War II for Japan, between the 1950s and the early half of the 1960s, was in the red. In the latter half of the 1960s, there was a period of exceptional economic growth and while Japan’s capital balance had been in the red, its trade balance improved so much that the capital balance went into the black. The balance of capital accounts is the balance between investments made outside the country and investments made by foreign nations within Japan itself. If the balance for trade and tourism is in the red, the economy does not work well, unless investment is sought from foreign nations. Japan’s trade was in good shape, but in 1973, due to the OPEC crisis, the price of oil – a commodity essential to Japanese industry – soared and Japan went deeply into the red. By the 1980s, Japan had overcome the oil crisis by embracing things like ecologically-friendly technologies and the country’s current balance went into the black, with these huge profits turning Japan into the world’s greatest investor. When Japan’s trade balance went so far into the black, the USA became intensely critical of Japan, making the exchange rate for the yen against the dollar even higher. Nevertheless, in 2005, money earned overseas exceeded profits from trade revenue. In other words, Japan invested money earned in the past from trade and other sources overseas, gaining a profit from its overseas assets. Japan has continuously earned approximately 10 trillion yen every year in trade. However, due to the accident in the Fukushima nuclear power plant caused by the Great East Japan Earthquake in 2011, it has increased the amount of energy imported. In addition, the yen went up to 76 yen against the dollar and as a result, Japan’s trade balance between 2011-2015 went into the red. On the other hand, the balance of services, which had always been in the red, went into the black for the first time in 2015 because of the travel industry. The number of tourists to Japan exceeded 30 million in 2019. Revenues for intellectual property are also increasing, with increasing payments of royalities for patents from overseas nations. However, with the worldwide spread of COVID-19 in 2020, Japan has been urged to take new measures.

国際こくさい収支しゅうし
kokusai shuushi wo
(the) international balance of payments
おおきくけると
ookiku wakeruto
is divided
経常けいじょう収支しゅうし
keijyou shuusi,
current balance
資本しほん収支しゅうし
shihonn shuushi,
balance of capital accounts
そして
soshite
and
金融きんゆう収支しゅうし
kinnyuu shuushi
financial accounts
です。
desu.
into
経常けいじょう収支しゅうし
keijyou shuushi
(the) current balance
no
of
はしらは、
hashira ha,
(the) majority
輸出入ゆしゅつにゅう
yushutunyuu no
(the) balance of exports and imports
きである
sashihiki dearu
made by calculating
貿易ぼうえき収支しゅうし
boueki shuushi
(in) trade balance
to
and
旅行りょこう
ryokou
travel
ya
(and)
特許料とっきょりょう
tokkyo ryou
patent royalties
などの
nadono
such as
サービスさーびす収支しゅうし
sa-bisu shuushi
the balance on services income (from)
です。
desu.
is
だい世界せかい大戦たいせん
dainiji'sekai'taisenn go,
World War two post
1950せんきゅうひゃくごじゅう
sennkyuuhyaku gojyuu
(the) nineteen-fifties
から
kara
and
1960せんきゅうひゃくろくじゅう
sennkyuhyaku rokujyuu
(the) nineteen-sixties
年代ねんだい
nenndai
[generation]
前半ぜんはんにおける
zennhann niokeru
(the) early half of
日本にほん
niohnn
Japan
no
for
国際こくさい収支しゅうし
kokusai shuushi ha
(the) balance of payments (between)
赤字あかじでした。
akaji deshita.
was in the red
経済けいざい成長せいちょう
keizai seichou ga
economic growth
いちじるしかった
ichijirushikatta
(there was a period of) exceptional
1960年代せんきゅうひゃくろくじゅうねんだい
sennkyuhyaku rokujyuu nenndai
nineteen-sixties [generation]
後半こうはん
kouhann no
(in the) latter half of
資本しほん収支しゅうし
shinonn shuushi ha
(Japan’s) capital balance
赤字あかじ基調きちょう
akaji kichou
(in) the red [base]
でした
deshita
had been
が、
ga,
and while
貿易ぼうえき収支しゅうし
boueki shuushi ga
(its) trade balance
改善かいぜんされ、
kaizenn sare,
improved (so much that)
経常けいじょう収支しゅうし
keijyou shuushi ha
current balance
黒字くろじ基調きちょうでした。
kuroji kichou deshita.
went into the black (base)
資本しほん収支しゅうしは、
shihonn shuushi ha,
the balance of capital accounts
外国がいこく
gaikoku
outside the country
への
heno
made
投資とうし
toushi
investments
to
and
外国がいこく
gaikoku
foreign nations
からの
karano
made by
投資とうし
toushi no
investments (within Japan itself)
収支しゅうし差額さがく
shuushi sagaku
(the) balance between
です。
desu.
is
貿易ぼうえき
boueki
trade
ya
and
観光かんこう
kannkou no
tourism
収支しゅうし
shuushi ga
(the) balance for
赤字あかじ
akaji no
(in) the red
場合ばあい
baai,
if is
海外かいがい
kaigai
foreign nations
からの
kara no
from
投資とうし
toushi wo
investment
まなければ
yobi komanakereba
is sought unless
経済けいざい
keizai ha
(the) economy
まわらなくなります。
mawaranaku narimasu.
does not work (well)
日本にほん貿易ぼうえき
nihonn no boueki ha
Japan’s trade
好調こうちょう
kouchou
good shape
ni
in
推移すいい
suii
[transition]
します
shimasu
was
が、
ga,
but
1973年せんきゅうひゃくななじゅうさんねん
sennkyuuhyaku nanajyuu sannnenn
nineteen-seventy three [year]
には
niha
in
オイルショックおいるしょっく
oirushokku
the OPEC crisis
で、
de,
due to
日本にほん産業さんぎょう
nihonn no sanngyou
Japanese industry
ni
to
不可欠ふかけつ
fukaketsu na
(a commodity) essential
石油せきゆ
sekiyu
oil
no
of
価格かかく
kakaku ga
(the) price
高騰こうとうし、
koutou shi,
soared and
大幅おおはば
oohaba na
deeply
赤字あかじ
akaji
the red
ni
into
おちいりりました。
ochiiri mashita.
(Japan) went
省エネしょうえね技術ぎじゅつ
shouene gijyutu
ecologically-friendly technologies
などで
nado de
by embracing things like
オイルショックおいるしょっく
oiru shokku wo
(the) oil crisis
克服こくふくした
kokufuku shita
(Japan) had overcome
1980年代せんきゅうひゃくはちじゅうねんだい
sennkyuuhyaku hachijyuunenndai,
by the nineteen eighties [generation] and
日本にほん
nihonn no
(the) country’s <Japan's>
経常けいじょう収支しゅうしは、
keijyou shuushi ha,
current balance
大幅おおはば
oohaba na
(these) huge profits
黒字くろじ
kuroji ni
the black (with)
なり、
nari,
went into
世界せかい
sekai
the world’s
最大さいだい
saidai no
greatest
資本しほん供給国きょうきゅうこく
shihonn kyoukyu koku
investor
となりました。
to narimashita.
turning (Japan) into
日本にほん
nihonn no
Japan’s
貿易ぼうえき収支しゅうし
boueki shuushi no
trade balance
黒字くろじ
kuroji ga
the black
巨額きょがくになる
kyogaku ninaru
went so far into
と、
to,
when
アメリカあめりか
amerika
the USA
では
deha
in
はげしい
hageshii
intensely
ジャパンバッシングじゃぱんばっしんぐ
jyapann basshinngu ga
critical of Japan
こり、
okori,
occurred
円高えんだかへと
enndaka heto
the exchange rate for thie yen against the dollar even higher
誘導ゆうどうさせられました。
yuudou saseraremashita.
making
それにもかかわらず、
sorenimokakawarazu,
nevertheless
2005年にせんごねん
nisenngonenn
two thousand five [year]
には、
niha,
in
自国じこく以外いがい
jikoku igai de
overseas
かせいだ
kaseida
earned
かね
okane ga
money
貿易ぼうえき黒字くろじ
boueki kuroji wo
profits from trade revenue
上回うわまわりました。
uwamawari mashita.
exceeded
つまり、
tsumari,
in other words
過去かこ
kako
the past
ni
in
貿易ぼうえき
boueki
(from) trade
などで
nado de
and other sources
かせいだ
kaseida
from earned
かね
okane wo
money
海外かいがい
kaigai ni
overseas
投資とうしし、
toushi shi,
(Japan) invested
その資産しさん
sono shisann
its (overseas) assets
から
kara
from
収益しゅうえき
shuueki wo
(a) profit
ているのです。
ete irunodesu.
gaining
日本にほん
nihonn ha
Japan
毎年まいとし
maitoshi
every year
やく
yaku
approximately
10兆円じゅっちょうえん
jyucchou enn no
ten trillion yen
貿易ぼうえき黒字くろじ
boueki kuroji wo
earned in trade
継続けいぞくしていました。
keizoku shiteimashita.
has continuously
しかし、
shikashi,
however
2011年にせんじゅういちねん
nisennjyuuichi nenn
twenty-eleven [year]
no
in
東日本ひがしにほん大震災だいしんさい
higashinihonn daishinnsai
the Great East Japan Earthquake
ともな
ni tomonau
caused by
福島ふくしま原発げんぱつ事故じこ
fukushima gennpatsu jiko
(the) accident in the Fukushima nuclear power plant
により、
nioyori,
due to
エネルギーえねるぎー輸入量ゆにゅうりょう
enerugi- yunyuuryou ga
(the) amount of energy imported
増加ぞうかしました。
zouka shimashita.
(it) has increased
また、
mata,
in addition
1ドルいちどる
ichidoru
(the) yen
76円ななじゅうろくえん
nanajyuurokuenn
seventry six yen against (the) dollar
まで円高えんだかすすみ、
made enndaka ga susumi
up to went and as a result
2011~2015年にせんじゅういちからにせんじゅうごねん
nisennjyuuichi kara nisennjyuugo
twenty eleven to twenty fifteen [year]
ha
between
貿易ぼうえき
boueki
(Japan’s) trade (balance)
赤字あかじ
akaji ni
the red
なりました。
narimashita.
went into
一方いっぽうで、
ippou de,
on the other hand
つね
tsune ni
always
赤字あかじ
akaji ga
the red
つづいていた
tsuzuite ita
(which) had been in
サービスさーびす収支しゅうしは、
sa-bisu shuushi ha,
(the) balance of services
観光かんこう産業さんぎょう
kannkou sanngyou
(the) travel industry
によって
niyotte
because of
2015年にせんじゅうごねん
nisennjyuugo nenn
twenty fifteen [year]
ni
in
はじめて
hajimete
for the first time
黒字くろじ
kuroji to
the black
なりました。
narimashita.
went into
2019年にせんじゅうきゅうねん
nisennjyuukyuu nenn
twenty nineteen [year]
には
niha
in
訪日ほうにちきゃく
hounichikyaku ga
(the number of) tourists to Japan
3千万人さんぜんまんにん
sannzennmannninn wo
thirty million [people]
えました。
koemashita.
exceeded
海外かいがい
kaigai
overseas nations
からの
kara no
from
特許料とっきょりょう収入しゅうにゅう
tokkyo shuunyuu
payments of royalties for patents
などの
nado no
[and others]
増加ぞうか
zouka
increasing
で、
de,
with
知的ちてき財産ざいさん
chiteki zaisann
intellectual property
による
niyoru
for
収益しゅうえき
shuueki
revenues
mo
also
増加ぞうかしています。
zouka shite imasu.
are increasing
しかし
shikashi
however
2020年にせんにじゅうねん
nisenn nijyuu nenn,
(in) twenty-twenty [year]
新型しんがたコロナウイルスころなうぃるす
shinngata korona wirusu no
COVID-19
世界的せかいてき
sekaiteki na
world-wide
ひろがり
hirogari
spread of
により、
niyori,
with
日本にほん
nihonn ha
Japan
あらたな対応たいおう
aratana taiou wo
new measures to take
せまられました。
semararemashita.
has been urged

More from Hiragana Times

Learn anytime, anywhere and experience more on app

Explore Japanese culture with Hiragana Times

Subscribe
00:00 / 00:00