Which country is the world's biggest "creditor"?

(GLO)- For the first time in 34 years, Japan is no longer the world's largest creditor nation, as Germany has surpassed it in terms of net foreign assets. This is a remarkable milestone, taking place in the context that Japan's net foreign assets are still increasing to a record high in 2024.

Japanese Yen 5,000 and 10,000 denominations. (Photo: Internet)

Germany surges to the top spot thanks to its large current account surplus, reaching 248.7 billion euros in 2024, largely due to strong trade performance.

Meanwhile, according to data released by Japan's Ministry of Finance on May 27, Japan's total net foreign assets reached 533.05 trillion yen (about $3.7 trillion) at the end of 2024, up about 13% from the previous year. However, the country officially lost its position as the world's largest creditor for the first time since 1991, although its net foreign assets still rose to a record high, partly due to the weakening yen.

Statistics show that Germany's net foreign assets will surpass Japan's by 2024 (Photo: Japan's Ministry of Finance)

In terms of country rankings, Japan currently ranks second in the list of countries with the largest net foreign assets in the world , while China holds the third spot with 516.28 trillion yen.

In terms of net debt, the United States continues to be the country with the highest net debt obligations, amounting to 4,109.26 trillion yen, showing that the scale of foreign debt is much larger than the amount of international assets the country holds.

Losing its position as the world's number one creditor is not only symbolic, but also reflects fundamental changes in the global financial structure that Japan needs to respond to carefully.

However, Japanese Finance Minister Katsunobu Kato appeared unconcerned by the change:

“Japan's net foreign assets are still rising steadily, so the ranking alone should not be seen as a sign that Japan's position has changed significantly.”

Japan's growing shift toward direct investment away from foreign stocks makes it harder to quickly withdraw capital when risks arise, said Daisuke Karakama, chief market economist at Mizuho Bank.

In the coming period, the direction of Japan's overseas investment flows will depend largely on whether businesses continue to expand spending abroad, especially in the US.

In the context of President Donald Trump's tax policy taking effect, some companies may consider shifting production or assets to the US to reduce trade-related risks./.

Source: https://baogialai.com.vn/quoc-gia-nao-dang-la-chu-no-lon-nhat-the-gioi-post325173.html