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Germany Overtakes Japan as Top Creditor Nation in 2024

28 May 20251 min read
INTERNATIONAL AFFAIRSGermanyOvertakes Japanas Top CreditorNation in 202428 May 2025safalsetu.com

Why in the news

Germany displaced Japan at the top of the creditor ranking; Japan had held it since 1991.

Key facts

  • Japan’s net external assets still rose about 13% to a record.
  • Japan’s current account surplus: 29.4 trillion yen (about 180 billion euros).
  • Germany’s gain reflects a strong trade-backed surplus.

About net foreign assets

  • Overseas assets less foreign-owned domestic assets, adjusted for currency; reflects cumulative current account changes.

Exam angle

  • China remains third.

Test yourself

1. Which country overtook Japan as the world's largest creditor nation at the end of 2024?

Germany's net external assets exceeded Japan's.

2. Since which year had Japan held the top spot among creditor nations before losing it?

Japan held the position since 1991, after overtaking Germany.

3. Which country ranked third in net external assets at the end of 2024?

China stayed third with 516.3 trillion yen.