Japan’s net foreign assets reached a record high of $3 trillion (471.3 trillion yen) in 2023, according to official data . This marks the sixth consecutive annual increase in Japan’s net foreign assets, reinforcing its position as the world’s top creditor.
Net foreign assets (NFA) represent the value of a nation’s assets held abroad minus the value of foreign-owned assets within the nation. A positive NFA indicates that the country owns more assets abroad than foreigners own within the country, making it a net creditor.
The report highlighted that the increase in Japan’s net foreign assets was driven by a weak yen and substantial overseas corporate acquisitions by Japanese entities, including companies, individuals, and the government. These factors collectively boosted the value of Japan’s foreign assets by 51 trillion yen in 2023.
As of the end of 2023, Japan’s leading position as the world’s top creditor is followed by Germany and China. This ranking underscores Japan’s significant role in the global economy.
Additionally, the Japanese government released revised data on the current account balance for 2023, revealing a surplus of 21.4 trillion yen. A current account surplus occurs when a country’s exports of goods and services, earnings from foreign investments, and incoming money transfers from abroad exceed its imports of goods and services, outbound income to foreign investments, and other outbound payments. This surplus indicates a robust economic status and high international competitiveness for Japan.
Overall, Japan’s continued growth in net foreign assets and its substantial current account surplus reflect its strong economic position and strategic international investments.
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