Japan loses world's top creditor spot to Germany after 34-year reign
Japan's net external assets hit ¥533.05 trillion ($3.7 trillion) in 2024, a 13% rise from last year, but it was surpassed by Germany, which now leads in net external assets
 "Japan loses world's top creditor spot to Germany after 34-year reign")
By Erica Yokoyama
Japan 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.
Japan’s net external assets reached ¥533.05 trillion ($3.7 trillion) at the end of 2024, rising about 13 per cent from the previous year, according to data released Tuesday by the Ministry of Finance. While the figure marked an all-time high, it 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 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 per cent, exaggerating the increase in German assets versus Japanese in yen terms.
For Japan, a weaker yen contributed to increases in both foreign assets and liabilities, but assets grew at a faster pace, driven in part by expanded business investment abroad.
The data generally reflect broader trends in foreign direct investment. In 2024, Japanese companies maintained a robust appetite for foreign direct investment, particularly in the US and UK, according to the ministry. Sectors such as finance, insurance and retail attracted significant capital from Japanese investors, the ministry said.
Looking ahead, the trajectory of outbound investment may hinge on whether Japanese firms continue to expand their overseas spending, especially in the US. With President Donald Trump’s tariff policies in effect, some companies may be incentivized to relocate production or transfer assets to the US to mitigate trade-related risks.