Japan Falls to Second Place in Net External Assets After 34 Years, Overtaken by Germany

Record High for Six Consecutive Years

According to a report by the Nihon Keizai Shimbun (Nikkei) on May 27, Japan's net external assets hit a record high for the sixth consecutive year last year. However, for the first time in 34 years, Japan ceded its position as the world's top holder of net external assets to Germany.

AFP Yonhap News

The Japanese Ministry of Finance announced that, as of the end of last year, the value of Japan's net external assets?calculated by subtracting foreign investors' external liabilities in Japan from the overseas assets held by the Japanese government, corporations, and individuals?rose by 12.9% year-on-year to 533.05 trillion yen (approximately 5,124 trillion won).

This marks the first time that Japan's net external assets have exceeded 500 trillion yen.

Last year, Japan's external assets increased by 11.4%, while its external liabilities also grew by 10.4%.

Germany's net external assets stood at 569.6512 trillion yen (about 5,475 trillion won), while China, ranked third globally, had net external assets of 516.2809 trillion yen (around 4,962 trillion won).

Germany's net external assets are reported to have grown significantly due to its continued trade surplus.