Japan has 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 yen (US$3.7 trillion) at the end of 2024, rising about 13 per cent from the previous year, according to data released on Tuesday by the Ministry of Finance in Tokyo.

While the figure marked an all-time high, it was overtaken by Germany, whose net external assets totalled 569.7 trillion yen. China remained in third place with net assets of 516.3 trillion yen.
Containers are seen at a cargo terminal in Frankfurt. Germany’s current account surplus exceeded US$280 billion last year, largely thanks to trade. Photo: AP

Containers are seen at a cargo terminal in Frankfurt. Germany’s current account surplus exceeded US$280 billion last year, largely thanks to trade. Photo: AP

Germany’s ascent reflects its substantial current account surplus, which reached €248.7 billion (US$283.2 billion) in 2024 thanks largely to a strong trade performance.

Japan’s surplus in turn was 29.4 trillion yen 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.