According to data published by the Ministry of Finance of Japan, Japan for the first time in 34 years has left its position as the world’s largest creditor country.
Japan’s net external assets is a record levelThe stronger euro, the new depreciation and Germany’s surplus led by export led to balance.
At the end of 2024, Japan’s net external assets 533.1 trillion ¥ (about $ 3.73 trillion), Ministry of Finance in question Tuesday. The figure increased by 13% compared to last year, which has shown that foreign investments increased by Japanese companies.
But Germany’s Network external assets grown 569.7 trillion ¥ ($ 3.99 trillion) is more upright. This makes Germany the largest creditor country on the planet.
China came third with net external assets of 516.3 trillion ¥ ($ 3.62 trillion).
The rise of Germany to the summit is largely large current account account. In 2024, especially luxury machines, cars and industrial equipment, such as increased exports increased to 282.99 billion dollars increased.
In contrast, the surplus in Japan’s current account was 29.4 trillion ¥ or about $ 205 billion. This is a healthy number, but not close enough to keep up with Germany.
The weak yen fueled Japan’s existence growth, but not enough to lead
Yen’s devaluation was a major factor behind the growth of Japan’s foreign assets. The value of the assets in the currencies that are recycled to Yen as they weaken against the euros and the dollar.
Yen fell roughly 11.7% against the US dollar in 2024 and 5% against the Euro. This led to the fact that German assets in euro look much larger in yen.
At the end of 2024, Japan had gross external assets of 1,659 trillion ¥ ($ 11.61 trillion) or 169 trillion ¥ ($ 1.18 trillion) compared to the previous year. Nevertheless, their obligations increased, 109 trillion ¥ ($ 0.76 trillion) increased 1.126 trillion ¥ (7.88 trillion $).
Although Japan published strong figures, Germany’s increase in external surplus, combined with appropriate money movements, ultimately gave it aside.
Trade pressure pushes Japan to invest abroad
In 2024, Japanese enterprises gained acceleration of aggressive overseas investments, especially in the field of finance, insurance and retail. The United States and the United Kingdom remained key targets for these investments.
Japan’s merger and inheritances have seen a particularly strong growth. Such investments helped increase general foreign assets, but may not result in short -term earnings.
In the future, Japan’s status as a global creditor will depend on how its companies are wages in the global economy as a stall of increasing geopolitical tensions and developing tariff rules.
Re -revitalization and trade policies of President Donald Trump can also affect where and how Japanese companies make more investments. Some may carry production or assets to the USA as an insurance policy against future tariffs or other trade blocks.
Japan is still one of the most financial countries in the world. However, it is unclear whether the country can maintain its economic success, because it threatens to prevent economic growth in the long run, such as the influence of an aging population, stubbornly low wages and permanent deflation.
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