Japan just got richer on paper, but still lost its 34-year streak as the world’s top creditor nation.
According to data released by Japan’s Ministry of Finance, the country’s net external assets hit a record ¥533.1 trillion (₹31 lakh crore approx) in 2024. That means Japan (its government, companies, and citizens) owns more assets abroad than it owes, more than most countries can dream of.
But here’s the plot twist: Germany outpaced Japan for the first time in over three decades with ¥569.7 trillion in overseas assets. China now sits in third place, slightly behind Japan with ¥516.3 trillion.
What’s in It for India?
If you’re wondering why this matters to Indian readers, here’s why:
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Big Money Movement: Countries like Japan and Germany own assets all over the world, including in India. This gives them the power to influence global markets and invest (or pull out) billions in one go.
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Rupee vs. Yen: Just like Indians track the dollar for gold and petrol prices, the yen’s weakening also affects trade, tech imports, and competition in sectors like electronics and automobiles.
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Indian Startups, Take Note: Japanese giants like SoftBank, Hitachi, and Toyota have major stakes in Indian tech, infrastructure, and finance. Their growing global appetite could open new doors (or shut them, if they focus elsewhere).
Why Japan’s External Assets Boomed
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Weaker Yen, Stronger Assets: In 2024, the yen fell 11.7% against the dollar. This made Japan’s old investments abroad suddenly worth much more when calculated in yen.
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Corporate Buying Spree: Japanese companies went all-in on international mergers and acquisitions, buying firms and assets worldwide to diversify and survive the slowing domestic economy.
But It’s Not All Good News
Despite growing richer on paper, Japan now has more competition in global influence. Germany’s rise signals a shift in economic power within developed nations, and could mean more competition for trade partnerships, loans, and investment clout.
Still, Japan isn’t falling behind—it’s evolving. With over ¥1,659 trillion in gross assets, its global economic footprint is still massive.
Quick Facts
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📈 Japan’s net overseas wealth: ₹31 lakh crore
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🥇 New No.1 Creditor: Germany
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📉 Yen fell 11.7% against the dollar in 2024
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🧾 Current Account Surplus: ¥29.4 trillion (₹1.7 lakh crore)
For India, Japan’s wealth boom (and Germany’s rise) could mean new economic alliances, shifting global trade balances, and increased competition in emerging markets.
Eyes are now on how India navigates this changing landscape, especially with Japan and Germany as two of its biggest tech and infrastructure partners.
