Japan’s gross external assets increased by 12.9% compared to the previous year, reaching 533.05 trillion yen ($3.7 trillion) by the end of last year, reports the Baltimore Chronicle, citing Kyodo News.
This figure surpassed 500 trillion yen ($3.49 trillion) for the first time, but the total amount remained below Germany’s 569.65 trillion yen ($3.98 trillion).
Japan’s Ministry of Finance explained that the growth in Japanese assets was partially due to the depreciation of the yen, which raised the value of foreign currency assets (such as stocks and bonds) when converted back to the national currency.
Germany overtook Japan thanks to a significant current account surplus.
In 2024, Japan increased its net external assets for the seventh consecutive year. The total volume of external assets rose by 11.4%, driven by direct investments in the U.S. by domestic financial institutions and trading companies, reaching 1,659.02 trillion yen.
Japan’s external liabilities also grew by 10.7%, reaching 1,125.97 trillion yen. By the end of 2024, the USD to yen exchange rate was 157.89 yen, an 11.7% increase compared to the previous year.
In terms of net external assets, Japan is now ranked second in the world. China holds third place with 516.28 trillion yen. Meanwhile, the United States has net external debts amounting to 4,109.26 trillion yen — meaning its debts to foreign countries significantly exceed its overseas assets.
Earlier we wrote that Japanese shares plunge 4% on trade turmoil.