Japan loses top creditor status to Germany after 34 years despite record foreign assets

Japan has lost its long-held position as the world’s largest creditor nation for the first time in 34 years, falling behind Germany despite its net external assets reaching a record high, officials said Tuesday.

According to Japan’s finance ministry, the country’s net external assets stood at 533.05 trillion yen ($3.7 trillion) at the end of 2024 — a 12.9 percent increase from the previous year. However, this figure was surpassed by Germany, whose net external assets totaled 569.65 trillion yen.

Japan had held the top spot since 1991, but the ministry downplayed the significance of the shift. Government spokesperson Yoshimasa Hayashi said the ranking reflects various factors, including shifts in asset values, debt, and balance of payments. He emphasized that Japan’s steady growth in net foreign assets indicates no fundamental change in the country’s economic position.

“The change in ranking alone should not be seen as a major shift in Japan’s standing,” Hayashi said.

Mainland China ranked third with 516.28 trillion yen in net assets, followed by Hong Kong with 320.26 trillion yen and Norway with 271.83 trillion yen.

The ministry noted that Japan’s foreign assets and liabilities both rose last year, partly due to the weakening yen. However, foreign assets outpaced liabilities, thanks in part to increased overseas business investments by Japanese firms.