Tokyo  - Japan's current account surplus narrowed 19.4 per cent in July from the same month a year before to 1.27 trillion yen (13.9 billion dollars), the Finance Ministry said Tuesday.

The decline came as Japan received fewer payments for patents. As a result, the country's deficit in the service account, including payments in transport, tourism and royalties, expanded 28.9 per cent to 288.3 billion yen.

Japan's surplus in merchandise trade expanded 42.3 per cent to 437.3 billion yen, the ministry said.

Exports fell 37.6 per cent in July to 4.54 trillion yen for the 10th-straight monthly decline amid the global economic crisis.

July's imports were also down 41.2 per cent to 4.1 trillion yen as the average price of crude oil was 70 dollars a barrel against about 132 dollars in the same month of last year.

The current account balance shows the gap between a country's income from foreign sources and foreign obligations payable, excluding net capital investment. (dpa)