Japan loses position as world's largest creditor nation as Germany claims title after 34 years
Japan's position as the world's leading net-creditor nation over the years was due to decades of current account surpluses. (AI image)
Japan is no longer the world's leading creditor nation - and that's a first in 34 years! Germany has taken the top spot despite Japan's record overseas assets. Japan had held the top position since surpassing Germany in 1991.
Japan's position as the world's leading net-creditor nation over the years was due to decades of current account surpluses, leading to substantial foreign investments by Japanese entities.
According to the Ministry of Finance data quoted by Bloomberg, Japan's net external assets reached ¥533.05 trillion ($3.7 trillion) at the end of 2024, showing a 13% increase from the previous year. Although this figure was a record high, Germany surpassed it with net external assets of ¥569.7 trillion.
China maintained its third position with net assets of ¥516.3 trillion.
Germany's rise to the top position is attributed to its substantial current account surplus of €248.7 billion in 2024, primarily due to strong trade performance. In comparison, Japan's surplus was ¥29.4 trillion, approximately €180 billion, according to the finance ministry.
The loss of this position indicates that whilst Japan's assets continue to grow, other nations, including Germany and China, have experienced stronger actual demand.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
2025: Steel Suppliers From Mexico At Lowest Prices (Take A Look)
Steel Suppliers | search ads
Search Now
Undo
Also Read |
'Will not discuss…': US tells WTO that India has no basis to impose retaliatory duties on 29 American products
A nation's net foreign assets represent the difference between its overseas assets and domestic assets owned by foreigners, adjusted for currency value changes. This calculation essentially reflects the cumulative changes in the country's current account.
The euro-yen exchange rate increased by about 5% last year, amplifying the difference between German and Japanese assets when measured in yen.
On Tuesday, Minister of Finance Katsunobu Kato indicated he was not concerned about this development.
Kato explained to reporters that Japan's consistent growth in net external assets means the ranking shouldn't be viewed as a significant shift in Japan's standing.
Japan experienced growth in both foreign assets and liabilities, with assets showing stronger growth due to increased international business investments, influenced by the yen's depreciation.
The data released on Tuesday aligns with broader foreign direct investment patterns. The ministry reported that Japanese firms maintained strong foreign direct investment in 2024, particularly in the US and UK markets, with substantial investments flowing into finance, insurance and retail sectors.
Also Read |
Explained in charts: India to become 4th largest world economy soon. What's the road ahead to No.3 spot?
According to Karakama, Japan's shift towards direct investment rather than foreign securities has made capital repatriation less flexible.
"It's easy to imagine domestic investors selling foreign bonds and securities when risks emerge, but they're not going to divest from overseas companies they've acquired so easily," Bloomberg reported Karakama as saying.
The future direction of outbound investment could depend on Japanese companies' continued overseas expansion, particularly in the US. President Donald Trump's tariff policies might influence some firms to transfer assets or production to the US to address trade-related concerns.
However, Karakama noted that these uncertainties might also lead some companies to prefer domestic operations and avoid higher-risk investments.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
18 minutes ago
- Time of India
'My scheduled time comes to an end': Elon Musk exits Donald Trump's administration after criticising president's 'big beautiful bill'
Elon Musk on Thursday announced that he is stepping down from his role as a top adviser to US President Donald Trump , concluding his tenure as a special government employee tasked with leading a high-profile push to streamline federal bureaucracy. 'My scheduled time comes to an end' Taking to X, he wrote, 'As my scheduled time as a Special Government Employee comes to an end, I would like to thank President @realDonaldTrump for the opportunity to reduce wasteful spending. The @DOGE mission will only strengthen over time as it becomes a way of life throughout the government.' — elonmusk (@elonmusk) A White House official, speaking on condition of anonymity, confirmed Musk's exit. Musk's departure follows closely on the heels of his public criticism of Trump's signature legislative proposal, a sweeping tax and immigration bill the president has dubbed his 'big beautiful bill.' 'It can be big or beautiful, but not both' Musk, speaking Tuesday night to CBS, described the legislation as a 'massive spending bill." 'I think a bill can be big or it could be beautiful,' Musk said. 'But I don't know if it could be both.' His critique appeared to strike a chord with fiscal conservatives. On Wednesday, Senator Ron Johnson (R-WI) voiced his agreement, saying at a Milwaukee Press Club event, 'I sympathise with Elon being discouraged.' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Rumney: If You Were Born Between 1940-1975 You Could Be Eligible For This Life Cover Reassured Get Quote Undo Johnson added that he was 'pretty confident' there's enough GOP opposition to slow down the measure until the administration 'gets serious' about reducing spending. 'It's got a way to go' In response to the criticism, Trump defended the legislation during remarks in the Oval Office, calling it a product of complex negotiations. 'I'm not happy about certain aspects of it, but I'm thrilled by other aspects of it,' he said. 'We're going to see what happens. It's got a way to go.' The bill, recently passed by the Republican-controlled House, now heads to the Senate, where debate is intensifying. House Speaker Mike Johnson has urged senators to avoid making significant changes, warning that the legislation represents a 'very delicate balance' that could unravel if amended too heavily. The House will need to vote again once the Senate finalises its version. Musk's departure adds another twist to the already contentious legislative push and signals growing tension within the Republican ranks over the future of fiscal policy.
Time of India
19 minutes ago
- Time of India
Adani Ports and SEZ to raise Rs 5,000 crore via long-term bonds
Mumbai: Adani Ports and Special Economic Zone ( APSEZ ) is set to raise ₹5,000 crore through a 15-year rated, listed, secured non-convertible debenture (NCD) issue, marking its return to the domestic bond market after over a year. The non-convertible debentures could be priced at a coupon of 7.7% to 7.75%, a bank executive said on condition of anonymity. The issue opens for bidding on May 29. There is no greenshoe option, keeping the total size capped at ₹5,000 crore. Market insiders said the bonds would be subscribed by three financial institutions, including a state-run insurer. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Médico afirma: Esse truque caseiro alivia as varizes em curto prazo Fim das Varizes Undo Proceeds from the issuance would be used for capital expenditure , refinancing existing debt, and general corporate purposes. Agencies Bonds Corner Powered By Adani Ports and SEZ to raise Rs 5,000 crore via long-term bonds Adani Ports and Special Economic Zone plans to raise ₹5,000 crore. This will be through a 15-year non-convertible debenture issue. The issue opens on May 29. The funds will be used for capital expenditure and debt refinancing. This is Adani Ports' largest bond issuance. The company's net debt-to-Ebitda ratio has improved. The bonds are rated Crisil AAA. How Laddering Fixed Income Can Help You Stay Agile in an Uncertain World: Jiraaf's Strategy for FY26 BOJ on alert to impact of super-long yield swings on borrowing costs India bonds are a buy for Citi on diverging rates policy with US US treasury yields dip on Japan's likely bond shift Browse all Bonds News with As of March 31, 2025, APSEZ's net debt stood at ₹36,422 crore. With Ebitda at ₹20,471 crore, its net debt-to-Ebitda ratio stood at 1.78x, improving from 2.3x at the end of FY24. An Adani spokesperson did not immediately respond. Live Events "This is the largest bond issuance by APSEZ in terms of size," the banker cited above said. "Adani is opting for a longer tenor as the funding requirement is long-term in nature." The board of APSEZ gave in-principle approval for the issuance on May 22. The papers are rated Crisil AAA . APSEZ, India's largest private port operator, has a cargo handling capacity of 633 million metric tonnes and handled 450 MMT in FY25. Its portfolio includes 15 domestic ports/terminals and four global assets across Israel, Tanzania, Australia, and Sri Lanka. On April 17, 2025, the company announced acquisition of Abbot Point Port Holdings (APPH), Singapore-which owns the entities that own and operate North Queensland Export Terminal (NQXT)-from Carmichael Rail and Port Singapore Holdings, Singapore.
Time of India
20 minutes ago
- Time of India
HDFC Bank faces regulatory scrutiny over alleged mis-selling of Credit Suisse bonds in UAE
Mumbai: HDFC, India's most valuable bank, continues to be in a bit of a pickle in the Middle East ever since it ran into a controversy two years ago over alleged mis-selling of high-risk bonds floated by the disgraced Swiss lender Credit Suisse (CS). In the wake of the glare that HDFC faced amid complaints from bond investors, at least one UAE regulator is now examining the episode to determine if the bank had breached any of the licensing conditions while marketing the soured third-party products. A key issue is how the bank conducted business with customers through legal entities based in different jurisdictions. A customer might have been served by relationship managers (RMs) of its UAE office, while receiving advisory from officials attached to its operations in a separate entity at the Dubai International Financial Centre (DIFC), even as the accounts got booked with HDFC's full-service branch in Bahrain. Investors opened accounts with the Bahrain office and funded the account to buy the bonds, which is a common enough practice. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Chegou a São Paulo repelente de ratos e pombos Repelente Super Sônico Saiba Mais Undo DIFC, a financial free zone, functions as a separate jurisdiction under an independent legal system, different from general UAE laws. Financial services conducted in and from DIFC are regulated by Dubai Financial Services Authority (DFSA), an independent regulator. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Bonds Corner Powered By Adani Ports and SEZ to raise Rs 5,000 crore via long-term bonds Adani Ports and Special Economic Zone plans to raise ₹5,000 crore. This will be through a 15-year non-convertible debenture issue. The issue opens on May 29. The funds will be used for capital expenditure and debt refinancing. This is Adani Ports' largest bond issuance. The company's net debt-to-Ebitda ratio has improved. The bonds are rated Crisil AAA. How Laddering Fixed Income Can Help You Stay Agile in an Uncertain World: Jiraaf's Strategy for FY26 BOJ on alert to impact of super-long yield swings on borrowing costs India bonds are a buy for Citi on diverging rates policy with US US treasury yields dip on Japan's likely bond shift Browse all Bonds News with "If officials advising clients belong to the bank's DIFC office, and the RMs are employees of the Dubai representative office, which is under the UAE Central Bank, but the clients are not onboarded by the DIFC office, it can raise eyebrows among regulators. So when some aggrieved investors of the Credit Suisse bonds approached DFSA, alleging that they were misled, it was found that they were not onboarded in the DIFC branch of HDFC. The practice came to light as the regulators looked into the matter following investor complaints," a person with knowledge of the situation said. An HDFC Bank spokesperson did not respond to queries. Live Events The know-your-customer rules, anti-money laundering regulations, and the risk assessment under the suitability rules all differ in DIFC. "Besides, DIFC banks focus on 'professional clients' who are typically categorised as those having a minimum liquid net worth of $1 million. We don't know whether some clients who did not meet the criteria were onboarded by the Dubai rep office but was advised by the DIFC outfit," said another person. In most banks, advisors come to the picture for high-valued clients as RMs often lack the skill. The lender had extended leverage to some of the clients-offering loans to well-heeled non-resident Indians (NRIs) to invest in financial products. HNIs who had borrowed to invest were left fuming after a troubled Credit Suisse chose to write-down the AT1 bonds in 2023. "Even as their investments were wiped out, they faced margin calls from the lender as the bond prices dropped as CS' troubles intensified in the run-up to the write-down decision," said a finance professional in the region who had watched the episode closely. Unlike regular bonds, AT1, or additional tier-one bonds, carry a higher risk and are issued by banks to shore up capital. "Both the UAE authorities as well as DFSA had sought explanation from the bank then and the examination in the matter is ongoing," said a third person familiar with the situation. About 20 employees have quit HDFC UAE in recent months with the bank restricting bonuses and incentives, and going slow on the wealth management business in the UAE. This is understood to include a long-serving official. A number of them have joined a wealth advisory firm with roots in India.
