In the month of June for second consecutive time Japan saw a narrowing of its current- account surplus. It experienced that due to the lowering of growth in its export sector indicating that the economic recovery of the world’s second biggest economy has slowed down.

The gap has come down by eighteen percent taking the amount to one decimal zero four seven trillion of Yen from the previous year. The fact has been reported by the Ministry of Finance on Monday in the city of Tokyo.  

The income surplus of the country saw a decline of forty six percent indicating that the country saw less income from its overseas investment.  

As Japan’s gains from exports has reduced and there can be a significant fall off from its incentive measures analysts of Goldman Sachs Group Inc. has reduced their forecasts for gross domestic product of the country for this year and the coming year.

The demand of yen is fading and moreover its advance to attain a fifteen year high against the dollar has posed threats to the profits of companies which helped the economic recovery.

Junko Nishioka, chief economist at RBS Securities in Tokyo, said that the main reason for the debacle is the slowdown in exports, which is expected to continue. The strengthening of the Yen has not affected exports of the country as yet but there are concerns that adverse effects might be seen with yen getting stronger.  

In Tokyo at twelve minutes past ten o clock in the morning Yen traded at eighty five decimal three nine per dollar. It went up in the tune of eighty five decimal zero two per dollar in the last week. According to CFO of Honda Motor Co, with yen going up to such a level it will be difficult to cope with it in the long run.