Japan’s net external assets surged to an all-time high of 471.3 trillion yen ($3 trillion) in 2023, marking a sixth consecutive year of growth, propelled by a depreciating yen and increased overseas corporate acquisitions. The Ministry of Finance revealed this data on Tuesday, reaffirming Japan’s status as the world’s leading creditor. Germany trailed closely behind with 454.8 trillion yen in net external assets, followed by China with 412.7 trillion yen by the end of 2023, as per the ministry’s report.
The combination of a weakened yen and heightened direct investments abroad facilitated Japan’s net external assets to soar by 51 trillion yen annually. These assets, encompassing holdings by the Japanese government, businesses, and individuals, saw a substantial appreciation in value.
Japan’s gross external assets tallied at 1,488 trillion yen, while external debt amounted to 1,017 trillion yen. The Ministry of Finance also revised its data on the current account balance. The finalized figures for 2023 revealed a current account surplus of 21.4 trillion yen, slightly surpassing the preliminary surplus of 20.6 trillion yen.
This notable uptick in Japan’s net external assets underscores the country’s robust economic standing and global financial influence. With continued growth in overseas investments and a solid current account surplus, Japan maintains its position as a pivotal player in the international financial landscape.
