Japan’s net external assets hit a record 561.75 trillion yen in 2025 but fell to third globally behind China and Germany.
Japan’s net external assets increased 4.4% year-on-year to a record 561.75 trillion yen ($3.53 trillion) in 2025, marking the eighth consecutive annual rise. Growth was fueled by overseas investments and valuation gains on foreign securities held by residents.
Despite the record, Japan dropped to third in global creditor rankings, overtaken by China at 636.3 trillion yen and trailing Germany’s 675.5 trillion yen. The shift follows Japan’s loss of the top spot to Germany the previous year for the first time in 34 years.
Rising external liabilities, driven by a 62.2 trillion yen increase in non-resident holdings of Japanese equities, constrained Japan’s net position. Both China and Germany have benefited from sustained trade surpluses.