Japan’s net external assets reached a record high of 471.3 trillion yen ($3 trillion) in 2023, marking the sixth consecutive year of growth. Despite facing challenges in recent years, Japan maintained its position as the world’s largest creditor, with Germany and China following closely behind with 454.8 trillion yen and 412.7 trillion yen in net external assets, respectively.
The weak yen and overseas corporate acquisitions were the driving forces behind this increase in Japan’s foreign assets, according to a report from the Ministry of Finance released on Tuesday. The weak yen made Japanese exports cheaper, which attracted foreign investors and contributed to an increase in direct investment abroad.
In addition to the growth in net external assets, Japan also reported a current account surplus of 21.4 trillion yen for 2023, slightly higher than the preliminary figure of 20.6 trillion yen. This surplus reflects Japan’s ability to maintain strong economic performance despite global economic uncertainties.
Overall, Japan’s gross external assets totaled 1,488 trillion yen, while its external debt stood at 1,017 trillion yen. With a strong position as a creditor nation and continued growth in external assets, Japan remains a key player in the global economy.
