Germany dethrones Japan as world's top creditor
For the first time in 34 years, Japan has lost its status as the world's largest creditor, despite achieving a record foreign asset value of 533.05 trillion yen ($3.7 trillion), according to data published by the Japanese Ministry of Finance. Germany has taken the lead, while China remains in third place.
The growth of Japan's net assets, held by the government, companies, and private individuals, amounted to 60.9 trillion yen, a 12.9% increase year over year.
The main drivers of this growth for the seventh consecutive year were the weakening of the yen against the dollar (by 11.7%) and the euro (by 5%), which increased the value of existing foreign assets when converted into yen. The active involvement of Japanese companies in mergers and acquisitions abroad also contributed to the growth.
Germany as the new leader
Nevertheless, Japan was surpassed by Germany, whose net assets reached 569.7 trillion yen, according to ministerial data.
Germany's rise reflects its substantial current account surplus, which in 2024 amounted to $283.2 billion, mainly due to strong trade performance, Bloomberg explains.
China secured third place with 516.3 trillion yen in foreign assets. The United States, on the other hand, recorded a negative position, with net external liabilities of 4109.26 trillion yen, indicating their foreign debts significantly exceed their assets.
