Japan's 2023 Net External Assets Hit Record 471-T Yen

Japan's net external assets hit a record 471.31 trillion yen ($3 trillion) in 2023, as a sharp drop in the yen inflated the value of foreign stocks, bonds, and other holdings in yen terms.

The yen's weakness inflated overseas profits for Japanese exporters and the value of foreign assets such as stocks and bonds in yen terms.

Increased direct investment overseas by Japanese firms also boosted the total, recent government data showed, Kyodo News reported.

The nation's gross assets increased by 51.31 trillion yen, or 12.2% from 2022, posting a record high for the fifth straight year.

Japan was the world's largest creditor for the 33rd straight year in yen terms, ahead of Germany and China, according to the International Monetary Fund (IMF) and other sources, Mainichi Japan also reported.

The yen's weakness persisted in 2023, becoming a source of concern for importers and households as it increased the costs of imported energy and raw materials.

However, it also inflated overseas profits for Japanese exporters and the value of foreign assets such as stocks and bonds in yen terms.

The net balance takes into account external assets held by Japan and the country's liabilities, or assets held by foreign investors. External assets, held by the Japanese government, companies, and individual investors, rose 148.68 trillion yen, or 11.1 percent, to 1,488.34 trillion yen.