Japan is still the world’s largest creditor, with net foreign assets reaching a record high of $3 trillion in 2023.
Japan is still the world’s largest creditor, with net foreign assets reaching a record high of $3 trillion in 2023.
According to official figures quoted by Reuters, Japan’s net foreign assets reached a record high of $3 trillion (471.3 trillion yen) in 2023.
According to the report, Japan’s net foreign assets increased for the sixth year in a row in 2023.
The value of a country’s assets abroad less the assets that foreigners own in that country is known as net foreign assets, or NFA. A country is considered to be a net creditor if its foreign asset holdings exceed its foreign debt.
According to the NFA statistics for 2023, Japan continues to be the largest creditor in the world.
According to the research, the value of Japan’s foreign assets increased due to the weakening yen and foreign corporate acquisitions by Japanese individuals, firms, and the government. 51 trillion yen was the total amount of annual increases.
According to the agency’s data as of the end of 2023, China and Germany are the next two largest countries in terms of net creditors, behind Japan.
The Japanese government also released the revised current account balance data. In 2023, Japan had the current account surplus of 21.4 trillion yen. A country is said to have a current account surplus when exports of goods and services, foreign investments’ earnings, and incoming money transfers from abroad are higher than imports of goods and services, the outbound income to foreign investment in the country, and other outbound payments. A country having a current account surplus is rated highly in terms of economic status and international competitiveness.
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