Japan Loses Status As World’s Top Creditor For First Time In 34 Years

Japan has 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 hit a record high, due in part to a weaker yen, the Finance Ministry said Tuesday, Kyodo News reported.

By country and region, Japan ranked as the second-largest holder of net external assets.

Japan’s gross external assets rose 12.9% from a year earlier to 533.05 trillion yen ($3.7 trillion) as of the end of last year, surpassing 500 trillion yen for the first time. However, the total fell short of Germany’s 569.65 trillion yen.

The depreciation of the yen boosted the value of Japan’s foreign-currency-denominated assets—including stocks, bonds, and other holdings—when converted into yen.

The ministry noted that Germany also benefited from a large current account surplus.

Japan increased its net external credit position for the seventh consecutive year, with total external assets rising 11.4% to 1,659.02 trillion yen, driven largely by direct investment in the U.S. by domestic financial institutions and trading houses.

External liabilities also climbed, increasing 10.7% to 1,125.97 trillion yen. The ministry reported the U.S. dollar was trading at 157.89 yen at the end of 2024, up 11.7% 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. In contrast, the United States held a net external liability of 4,109.26 trillion yen, meaning its foreign debts far exceeded its overseas assets.