[Asia Economy Reporter Park Byung-hee] Japan has maintained its position as the world's largest net creditor for 30 consecutive years. This means that the amount of money Japan is owed by foreign countries (external claims) exceeds the amount it owes (external liabilities) more than any other country in the world.
On the 25th, Japan's Ministry of Finance announced that as of the end of last year, the net external assets?calculated by subtracting external liabilities, which are assets held by foreign investors in Japan, from overseas assets held by the government, corporations, and individuals?amounted to 356.97 trillion yen (approximately 3684 trillion won).
The net external asset valuation decreased by 46 billion yen compared to the end of 2019 due to the impact of the yen's appreciation.
As of the end of last year, the country with the second-largest net external assets after Japan was Germany. According to the Ministry of Finance, Germany's net external assets amounted to 323.4659 trillion yen. Hong Kong followed with 223.0913 trillion yen.
Japan's total external assets stood at 1146.126 trillion yen as of the end of last year. This represents a 5.1% increase compared to the end of 2019, marking the 12th consecutive year of growth.
External liabilities increased by 7.6% to 789.156 trillion yen, driven by the rise in prices of Japanese stocks held by foreign investors.
As of the end of last year, both Japan's external assets and external liabilities reached record highs.
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