Germany Surpasses Japan as Top Global Creditor

Germany’s Overseas Assets at 569.7 Trillion Yen

Japan’s Ministry of Finance confirmed on May 27, 2025, that Germany has overtaken Japan as the world’s largest creditor nation. This marks the end of a 34-year period where Japan held the top spot.

The change occurred despite Japan’s record overseas assets. Germany’s net external assets reached 569.7 trillion yen, while Japan’s were 533.05 trillion yen. Currency shifts played a vital role.

Currency Shifts Propel Germany Ahead of Japan

This change in creditor status has significant implications for global financial markets. Germany’s current account surplus was a major factor in surpassing Japan. The economic balance is notably shifting.

The currency exchange rate between the euro and yen influenced this development. As the yen depreciated, the value of Japanese assets decreased relative to German assets.

Global Finance Analyst, Business Times – “The weakening of the yen has played a crucial role in both increasing Japan’s overseas assets and altering its creditor position relative to Germany.”

Japan’s 34-Year Creditor Reign Concludes

Historically, Japan had been the top creditor since the late 1980s. The economic boom in Japan during that period solidified its position for decades, providing context to current changes.

Future trajectories depend on Japan’s investment strategies. Market analysts highlight potential shifts if Japanese firms expand investments in the United States, influenced by trade policies and currency trends.