Japan's net external assets hit a record 471.3 trillion yen ($3 trillion) in 2023, extending its reign as the world's top creditor for a sixth year, Reuters reported on Tuesday citing data released by the Ministry of Finance. The surge is buoyed by a weaker yen and more overseas acquisitions by Japanese companies, increasing Japan's foreign assets and reinforcing its status as the top creditor nation. Germany and China trail behind Japan, with net external assets worth 454.8 trillion yen and 412.7 trillion yen, respectively, as of December 2023. The yen's depreciation boosted Japan's net external assets, as the weaker yen increased the value of overseas assets when converted back to yen. Increased direct investments by Japanese companies abroad also fuelled this growth. Japan's total external assets reached 1,488 trillion yen, while external debt stood at 1,017 trillion yen. This results in a net external asset position of 471.3 trillion yen. The Ministry of Finance also revised its current account balance data for 2023. The nation recorded a surplus of 21.4 trillion yen, exceeding the preliminary estimate of 20.6 trillion yen.
