Japan has lost its status as the world’s largest creditor nation for the first time in 34 years, falling behind Germany despite recording a record high in net external assets. Japan’s Finance Ministry reported on Tuesday that its net external assets reached 533.05 trillion yen ($3.7 trillion) at the end of 2024 — a 12.9% increase from the previous year. However, Germany surpassed this with net assets totaling 569.65 trillion yen.
Japan had held the top creditor position since 1991. Government spokesperson Yoshimasa Hayashi played down the shift, attributing the change to fluctuations in asset values, debt levels, and balance of payments, while affirming Japan’s stable economic fundamentals.
Mainland China ranked third, followed by Hong Kong and Norway. The finance ministry noted that Japan’s rise in both foreign assets and liabilities was influenced by a weakening yen and growing overseas investments by Japanese businesses.
