Catenaa, Tuesday, May 27, 2025– Japan lost its title as the largest creditor nation in the world after 34 years to Germany, with $3.9 trillion external net assets, official data showed on Tuesday.
Data released by the Japanese Finance Ministry showed that Japan’s net external assets reached ¥533.05 trillion or $3.7 trillion at the end of 2024, rising about 13% from the previous year.
Despite the external net assets showing an all-time high, it was overtaken by Germany, whose net external assets totalled $3.9 trillion. China remained in third place with net assets of $3.5 trillion.
Germany’s ascent reflects its substantial current account surplus, which reached $282.5 billion in 2024, thanks largely to a strong trade performance. Japan’s surplus, in turn, was $200 billion.
Last year, the euro-yen rate rose around 5%, exaggerating the increase in German assets versus Japanese assets in yen terms.
Minister of Finance Katsunobu Kato signalled Tuesday that he was unperturbed by the development.
“Given that Japan’s net external assets have also been steadily increasing, the ranking alone should not be taken as a sign that Japan’s position has changed significantly,” Kato told reporters.
For Japan, a weaker yen contributed to increases in both foreign assets and liabilities, but assets grew at a faster pace, driven in part by expanded business investment abroad.
Tuesday’s data generally reflects broader trends in foreign direct investment. In 2024, Japanese companies maintained a robust appetite for foreign direct investment, particularly in the US and UK, according to the ministry.
Sectors such as finance, insurance and retail attracted significant capital from Japanese investors, the ministry said.
