Japan's 34-year reign as top global creditor ends

For the first time since 1991, Germany has overtaken Japan in terms of economic strength, despite the Asian country having a significant amount of assets overseas. 

As of the end of 2024, Japan held 533.05 trillion yen ($3.7 trillion) in other countries, up 13% from 2023. However, Germany took the top spot, with net overseas holdings totaling 569.7 trillion yen ($3.96 trillion).

Finance Minister Katsunobu Kato said he is not worried about this shift.

Germany's substantial trade surplus, which hit 248.7 billion euros ($282.27 billion) in 2024, has been a key factor in the country's economic growth.

Net foreign assets represent the difference between a nation’s total external holdings and the sum of domestic assets owned by foreign entities. They effectively indicate overall shifts in a country's current trade activities.

In Japan, the depreciation of the yen has spurred growth in foreign assets and liabilities. However, asset growth has outpaced the debt score, driven in part by increased investments in businesses abroad.