Japan has lost its position as the world’s largest creditor nation for the first time in 34 years, despite posting a record amount of overseas assets.
The country’s net external assets totaled ¥533.05 trillion ($3.7 trillion) at the end of 2024, rising about 13% from the previous year, according to data released Tuesday by the Finance Ministry. While the figure marked an all-time high, Japan was overtaken by Germany, whose net external assets totaled ¥569.7 trillion. China remained in third place, with net assets of ¥516.3 trillion.
Germany’s ascent reflects its substantial current account surplus, which reached €248.7 billion ($283 billion) in 2024 thanks largely to a strong trade performance. Japan’s surplus in turn was ¥29.4 trillion according to the finance ministry, equivalent to around €180 billion. Last year, the euro-yen rate rose around 5%, exaggerating the increase in German assets versus Japanese in yen terms.