đšBREAKING: đŻđ” Japan Loses Worldâs Top Creditor Status After 34 Years
In a major shift in global finance, Japan has lost its position as the worldâs largest creditor nation â a title it held for over three decades. Newly released data shows a decline in Japanâs net external assets, with Germany now taking the lead.
This marks a historic turning point. For 34 years, Japanâs vast foreign asset holdings were a symbol of its economic strength and consistent trade surpluses. But recent challenges â including a weaker yen, rising global interest rates, and declining investment returns â have chipped away at that dominance.
Meanwhile, Germanyâs robust export economy and fiscally disciplined policies have steadily boosted its net assets, allowing it to quietly surpass Japan.
Why it matters:
This change could affect Japanâs economic clout, international capital flows, and even currency dynamics, especially as traditional financial powers face growing pressure from emerging markets and the rise of decentralized finance.
