According to ChainCatcher and Jinshi data, the Japanese Ministry of Finance stated on Tuesday that Japan has lost its position as the world's largest creditor nation for the first time in 34 years, being replaced by Germany, despite Japan's total external assets reaching a record high, partly due to the weakening yen.
As of the end of last year, Japan's net external assets increased by 12.9% compared to the same period last year, reaching 533.05 trillion yen (3.7 trillion USD), breaking the 500 trillion yen mark for the first time, but lower than Germany's 569.65 trillion yen. The Japanese Ministry of Finance noted that the yen's depreciation boosted the value of Japan's foreign currency assets, including stocks, bonds, and other assets when converted to the local currency, and added that Germany benefited from its substantial current account surplus.
Driven by direct investments from domestic financial institutions and trading companies in the US, Japan's total external assets grew by 11.4% to 1,659.22 trillion yen. External liabilities increased by 10.7%, reaching 1,125.97 trillion yen.
