Japan lost its status as the world's largest creditor for the first time in 34 years, despite having a record 533.05 trillion yen ($3.7 trillion) in foreign assets, according to data released Tuesday by the finance ministry in Tokyo. Germany took over the title of leader, with China retaining third place.
The increase in Japan’s net assets held by the government, companies and individuals was 60.9 trillion yen, or 12.9 percent year-on-year.
The main drivers of this growth, for the seventh year in a row, were the weakening of the yen against the dollar (down 11.7%) and the euro (down 5%), which increased the value of existing overseas holdings in yen terms. The growth was also aided by stronger overseas merger and acquisition activity by Japanese companies.
Still, Japan was overtaken by Germany, whose net assets stood at 569.7 trillion yen, according to ministry data.
Germany's advancement reflects its large current account surplus, which reached $283.2 billion in 2024, mainly due to strong trade performance, Bloomberg explains.
China came in third with ¥516.3 trillion in foreign assets. The United States, on the other hand, recorded a negative position, with net external liabilities of ¥4,109.26 trillion, meaning that its foreign debts far exceed its assets.
Krzysztof Pawliszak (PAP)
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