Japan has lost its position as the world's largest creditor for the first time in 34 years, despite holding a record amount of foreign assets. Germany has now overtaken Japan, with China ranking third, according to data from Japan's Ministry of Finance.
Japan's net foreign assets stand at 533.05 trillion yen (approximately $3.7 trillion), a record high, but still insufficient to retain its top creditor status. Germany's net external assets total 569.7 trillion yen, largely due to a strong current account surplus.
In 2024, Germany's current account surplus reached $248.7 billion, driven by robust trade performance. Japan's surplus was 29.4 trillion yen (around €180 billion), with the euro appreciating by about 5% against the yen last year.
Bloomberg reports that Japanese companies have increased overseas investments, particularly in the US and UK, focusing on finance, insurance, and retail sectors. However, uncertainties around US trade policies under President Donald Trump may impact future investments.