Japan's net external assets rose to a record high of about ¥561.8 trillion (US$3.5 trillion) by the end of 2025, making it the world's third largest creditor nation behind Germany and China [1, 2, 3, 4].
Germany retained the top spot with net external assets of approximately ¥675.5 trillion, while China overtook Japan to become the second largest creditor nation with assets around ¥636.3 trillion at the end of 2025 [1, 5, 2, 3, 6, 4].
Japan lost its status as the largest creditor nation to Germany in 2024 after holding the position for 34 years. Its net external assets increased 4.4% year-on-year in 2025, extending a streak of eight consecutive years of growth [1, 5, 3, 6, 4].
Overseas assets held by Japan climbed 8.5% in 2025 to roughly ¥1,806 trillion, while its external liabilities also rose about 10.5% to ¥1,244 trillion. The increase in liabilities reflected higher valuations of Japanese securities owned by foreign investors [1, 5, 2, 3, 6].
Japan’s slower net asset growth compared with China and Germany is partly due to a 26% rise in the Nikkei 225, which boosted the value of domestic assets held by foreigners [1, 2]. China and Germany’s larger net asset gains were supported mainly by bigger current account surpluses driven by trade [1, 5, 2, 3, 6, 4].
Major sectors attracting Japanese outbound investment in 2025 included finance and insurance, transportation equipment, and nonferrous metals, especially in the US and Switzerland [1, 2, 3, 6].
At the end of 2025, the US remained the world’s largest net debtor with external liabilities of about ¥4,304 trillion [5].
China’s external assets focus on liquidity and stability, with a higher share of foreign exchange reserves and deposits, while Japan’s holdings emphasize direct and securities investments that generate income [7].
Japan’s net external assets hit their record mark on December 31, 2025, confirming its position as the third largest creditor nation behind Germany and China [1, 5, 2, 3, 6, 4].
