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Context:
Japan lost its position as the world’s largest creditor nation for the first time in 34 years. Germany surpassed Japan with net external assets of 569.7 trillion yen compared to Japan’s 533.05 trillion yen at the end of 2024.
Key Highlights:
- China remained third with net assets of 516.3 trillion yen.
- Japan’s net external assets grew by about 13% from the previous year, marking an all-time high despite losing the top spot.
Background
- Japan held the top position since 1991 after overtaking Germany.
- Germany’s rise is due to a substantial current account surplus of 248.7 billion euros in 2024, supported by strong trade performance.
- Japan’s current account surplus was 29.4 trillion yen (around 180 billion euros) in 2024.
Net Foreign Assets
- Net foreign assets equal the value of overseas assets minus domestic assets owned by foreigners, adjusted for currency changes.
- This reflects cumulative changes in the country’s current account over time.
