Japan's net external assets hit record, loses top creditor spot to Germany

Japan's net external assets reached a record 533.1 trillion yen ($3.73 trillion) in 2024, marking the seventh consecutive year of increase. The Ministry of Finance announced the rise was driven by a weak yen and strong overseas corporate acquisitions. Despite this growth, Japan lost its position as the world's top creditor to Germany for the first time in 34 years. Germany's net external assets totaled 569.7 trillion yen at the end of 2024, surpassing Japan. China ranked third with 516.3 trillion yen. The value of Japan's net external assets, held by the government, businesses, and individuals, increased by 60.9 trillion yen, or 12.9%, from the previous year. The dollar and euro strengthened against the yen, increasing the value of overseas assets in yen terms. Brisk overseas merger and acquisition activities by Japanese companies also contributed to the growth. Japan's gross external assets stood at 1,659 trillion yen, while external debt reached 1,126 trillion yen.