Overview
- Japan’s Finance Ministry data released Tuesday showed net external assets reached about ¥561.8 trillion at the end of 2025, an all-time high but not enough to hold its previous global rank.
- The country was pushed to third place behind Germany and China after their net positions were recorded at ¥675.5 trillion and ¥636.3 trillion respectively.
- Overseas assets climbed about 8.5% to roughly ¥1.806 quadrillion in 2025, driven by Japanese companies’ overseas investment and cross-border mergers and acquisitions.
- External liabilities rose faster, up about 10.5% to ¥1.244 quadrillion, in part because the Nikkei’s roughly 26% gain in 2025 produced an estimated ¥62.2 trillion upward valuation of Japanese securities held by non-resident investors.
- Germany’s and China’s larger trade surpluses helped boost their creditor positions, and the shift could alter how investors view Japan’s role as a source of global capital and the balance between outbound investment and foreign investment into Japan.