Japan loses top global creditor spot to Germany
The post Japan loses top global creditor spot to Germany appeared on BitcoinEthereumNews.com. For the first time in 34 years, Japan has relinquished its position as the world’s largest creditor nation, overtaken by Germany, according to data released by Japan’s Ministry of Finance. Even though Japan’s net external assets reached a record level, the stronger euro, the yen depreciation, and Germany’s export-led surplus also tilted the balance. At the end of 2024, Japan’s net external assets were ¥533.1 trillion (about $3.73 trillion), its Ministry of Finance said on Tuesday. The figure was up nearly 13% from last year, indicating an increase in foreign investment by Japanese companies. But Germany’s net external assets grew even steeper to ¥569.7 trillion ($3.99 trillion). That makes Germany the largest creditor nation on the planet. China held third place, with net external assets of ¥516.3 trillion ($3.62 trillion). Germany’s rise to the top is largely due to its huge current account surplus. In 2024, it rose to $282.99 billion, boosted by robust exports, particularly of luxury machinery, automobiles, and industrial equipment. By contrast, the surplus in Japan’s current account was ¥29.4 trillion, or about $205 billion. That’s a healthy number but nowhere near enough to keep up with Germany. Weak yen fuels Japan’s asset growth, but not enough to lead The devaluation of the yen was a big factor behind the growth of Japan’s foreign assets. The value of assets in the currencies appreciated when they were converted back into yen as the yen weakened against the euro and dollar. The yen fell roughly 11.7% against the U.S. dollar in 2024 and 5% against the euro. This caused euro-denominated German assets to look much larger in yen terms. By the end of 2024, Japan had gross external assets of ¥1,659 trillion ($11.61 trillion), or ¥169 trillion ($1.18 trillion) more than the preceding year. And yet its liabilities also…
The post Japan loses top global creditor spot to Germany appeared on BitcoinEthereumNews.com.
For the first time in 34 years, Japan has relinquished its position as the world’s largest creditor nation, overtaken by Germany, according to data released by Japan’s Ministry of Finance. Even though Japan’s net external assets reached a record level, the stronger euro, the yen depreciation, and Germany’s export-led surplus also tilted the balance. At the end of 2024, Japan’s net external assets were ¥533.1 trillion (about $3.73 trillion), its Ministry of Finance said on Tuesday. The figure was up nearly 13% from last year, indicating an increase in foreign investment by Japanese companies. But Germany’s net external assets grew even steeper to ¥569.7 trillion ($3.99 trillion). That makes Germany the largest creditor nation on the planet. China held third place, with net external assets of ¥516.3 trillion ($3.62 trillion). Germany’s rise to the top is largely due to its huge current account surplus. In 2024, it rose to $282.99 billion, boosted by robust exports, particularly of luxury machinery, automobiles, and industrial equipment. By contrast, the surplus in Japan’s current account was ¥29.4 trillion, or about $205 billion. That’s a healthy number but nowhere near enough to keep up with Germany. Weak yen fuels Japan’s asset growth, but not enough to lead The devaluation of the yen was a big factor behind the growth of Japan’s foreign assets. The value of assets in the currencies appreciated when they were converted back into yen as the yen weakened against the euro and dollar. The yen fell roughly 11.7% against the U.S. dollar in 2024 and 5% against the euro. This caused euro-denominated German assets to look much larger in yen terms. By the end of 2024, Japan had gross external assets of ¥1,659 trillion ($11.61 trillion), or ¥169 trillion ($1.18 trillion) more than the preceding year. And yet its liabilities also…
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