Tokyo - Japan's current account balance was cut more than in half in February compared with the same month a year ago but returned to the black after posting a deficit in January, government officials said Wednesday.

The nation's current account surplus narrowed 55.6 per cent in February to 1.12 trillion yen (11.14 billion dollars) on declining exports, the Finance Ministry said.

The trade surplus in goods and services fell 94.3 per cent from a year before to 53 billion yen.

The income surplus fell 34.1 per cent to 1.1 trillion yen, the biggest fall in almost three years.

Exports were down 50.4 per cent to 3.31 trillion yen year-on-year, and imports also declined 44.9 per cent to 3.11 trillion yen, leading to the goods trade surplus narrowing 80.4 per cent to 202.1 billion yen.

Japan's services trade deficit rose 47.2 per cent to 149.1 billion yen.

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

Japan's government was expected to unveil yet another stimulus package worth more than 2 per cent of the gross domestic product later this week to pull the country out of recession. (dpa)