Japan has lost its position as the world’s largest creditor for the first time in 34 years, despite reporting a record volume of foreign assets. The title now belongs to Germany, according to Bloomberg, citing data from the Japanese Ministry of Finance.
Germany Overtakes Japan with Strong Surplus and Currency Boost
Japan’s net foreign assets at the end of 2024 totaled a record 533.05 trillion yen. This marks an increase of around 13 percent compared to the previous year, the Japanese Ministry of Finance reported today. However, Germany’s net foreign assets amounted to an equivalent of 569.7 trillion yen. China ranked third, with net assets of 516.3 trillion yen.
Germany’s rise reflects its substantial current account surplus, which amounted to 248.7 billion euros last year, largely due to strong trade performance. Japan’s surplus was approximately 29.4 trillion yen, equivalent to about 180 billion euros. The euro appreciated against the yen by roughly five percent last year, which further increased the value of Germany’s assets when converted to yen.
Japan’s Long-Term Investment Strategy Faces Global Shifts
Japan’s long-standing status as the world’s top net creditor was the result of decades of current account surpluses, during which Japanese companies and investors heavily acquired foreign assets. The loss of this title suggests that while Japanese assets continue to grow, real demand has been stronger in other countries, including Germany and China.
The Japanese Ministry of Finance added that both foreign assets and liabilities rose, partly due to a weaker yen, though assets grew at a faster pace, supported in part by overseas corporate investments. Last year, Japanese companies showed strong interest in direct investments, particularly in the U.S. and the U.K. Sectors such as finance, insurance, and retail attracted significant capital from Japanese investors.
Net Foreign Assets: A Key Economic Indicator
A country’s net foreign assets represent the value of its foreign assets minus the value of domestic assets owned by foreigners, adjusted for exchange rate changes. This figure essentially reflects the cumulative development of the country’s current account balance.
Source: čtk










