Japan Drops to Third in Global Net Creditor Ranking

Japan has fallen to third place in the global net creditor rankings for 2025 despite its net external assets reaching a record high, the Japanese Ministry of Finance said on Tuesday (26 May).

The country’s net external assets, representing the value of foreign assets owned by the government, companies, and individuals minus foreign liabilities including foreign investments in Japan, rose to ¥56.175 trillion (approximately $3.5 trillion) by end-2025, a 4.4% increase from the previous year.

This marks the seventh consecutive annual record, driven by increased overseas investments from Japanese firms and higher equity valuations.

Data showed gross external assets grew 8.5% to ¥180.563 trillion, while external liabilities rose 10.5% to ¥124.388 trillion, the ministry added.

Japan lost its status as the world’s largest net creditor at the end of 2024, overtaken by Germany for the first time in 34 years.