Tokyo May 27 2025: Japan lost its status as the world’s top creditor for the first time in 34 years, overtaken by Germany, even as its net external assets rose to a record high, partly due to a weaker yen, the Finance Ministry said Tuesday.
Japan’s gross external assets increased 12.9 percent from a year earlier to 533.05 trillion yen ($3.7 trillion) as of the end of last year, topping 500 trillion yen for the first time, but the total was below Germany’s 569.65 trillion yen.
The yen’s depreciation boosted the value of Japan’s foreign-currency assets, including stocks, bonds and other holdings, when converted into the local currency, the ministry said, adding Germany benefited from a large current account surplus.
Japan increased its net external credit for the seventh consecutive year, with total external assets rising 11.4 percent to 1,659.02 trillion yen, driven by direct investment in the United States by domestic financial institutions and trading houses.
External liabilities also climbed 10.7 percent to 1,125.97 trillion yen, with the ministry saying the U.S. dollar was trading at 157.89 yen as of the end of 2024, up 11.7 percent from 141.40 yen the previous year.
By country and region, Japan ranked as the second-largest holder of net external assets, followed by China with 516.28 trillion yen. The United States, in contrast, had a net external liability of 4,109.26 trillion yen, meaning its foreign debts far exceeded its overseas assets.
Figures for other nations were converted into yen using the foreign exchange rates at the end of last year, as published by the International Monetary Fund, the Japanese ministry said.
