Japan has dropped another spot in global creditor standings, now ranking third worldwide after being overtaken by China, according to Tuesday’s announcement from the country’s Finance Ministry.
The nation’s combined external assets held by government entities, corporations, and private citizens climbed 4.4% compared to the previous year, reaching 561.75 trillion yen, equivalent to $3.53 trillion.
This represents the eighth consecutive year of asset expansion, fueled by Japanese corporations’ aggressive international investment strategies, cross-border mergers and acquisitions, plus increased valuations of foreign securities owned by Japanese residents.
Despite this record-breaking asset growth, Japan’s global standing has continued to slide. The country previously lost its decades-long top position to Germany just one year ago, ending a 34-year reign as the world’s leading creditor nation.
Ministry statistics, compiled using International Monetary Fund data, show Germany maintaining its leading position with net external assets worth 675.5 trillion yen, while China now holds second place at 636.3 trillion yen.
Officials noted that both Germany and China have strengthened their creditor positions through consistent annual trade surpluses.
Japan’s asset growth has been partially offset by a substantial increase in external liabilities. The robust performance of Japanese equity markets resulted in a 62.2 trillion yen upward revaluation of Japanese securities owned by foreign investors.
The current exchange rate stands at $1 equals 158.9800 yen.
