Japan's external net assets reached approximately ¥562 trillion by the end of 2025, placing the nation third globally behind Germany and China [1].

This shift in ranking highlights a changing global economic landscape as China accelerates its accumulation of foreign holdings. While Japan continues to grow its wealth abroad, the relative pace of other major economies has shifted the balance of global financial influence.

Finance Minister Shunichi Katayama said, "Japan's external net assets have become 562 trillion yen, and it is now third, following Germany and China" [1].

According to data released Tuesday, the exact external net assets balance at the end of 2025 was ¥561.7504 trillion [1]. This figure represents the eighth consecutive year of increase for Japan's net assets [1]. The total external assets held by Japan reached ¥1,805.6342 trillion [1], marking a 17-year streak of growth for total assets [1].

External assets saw a year-on-year increase of 8.5% [1]. This growth was driven by a weaker yen, which encouraged more overseas direct investment, and a rise in global equity and bond prices that increased the valuation of Japan-owned assets [1].

Despite these gains, Japan's external liabilities also rose, totaling ¥1,243.8838 trillion at the end of 2025 [1]. The net balance is calculated by subtracting these liabilities from the total assets.

Japan has long been a leading global creditor, but the recent data confirms it has been surpassed by China in the net asset rankings [1]. The Ministry of Finance said the overall increase in assets was due to the favorable valuation of foreign holdings amid currency fluctuations, a trend that has bolstered the nominal value of the portfolio even as the country's global rank slipped.

“Japan's external net assets reached approximately ¥562 trillion by the end of 2025.”

The decline in Japan's global ranking despite nominal growth reflects the impact of currency depreciation and the rapid economic expansion of China. While a weaker yen inflates the value of overseas holdings when converted back to yen, it also signals a shift in competitive dynamics. Japan remains a massive global creditor, but its relative dominance is waning as other nations accumulate foreign reserves and investments more aggressively.