By Admin 
Do you know that Japan, which was the largest lender country in the world for the last three decades, has now gone below this position? Yes, Japan, who has been on top of this list continuously since 1991, has now reached second and has replaced Germany.
what is the whole matter?
Japan had always become the largest net-creditor (lender) country due to its strong current account surplus (current account surplus) and foreign investments. But 2024 figures show that now Germany has won this game.
Japan still has record foreign assets, about $ 3.7 trillion which is 13 percent more than last year. But still Germany overtook him, whose net foreign properties have now reached 569.7 trillion yen.
What was the reason for Germany to overtake?
Germany’s current account surplus was 248.7 billion euros in 2024, due to its strong trading performance. Japan’s surplus was 29.4 trillion yen (about 180 billion euros). It is also worth noting that there was a difference of 5 per cent in the exchange rate between the yen and the euro, which made the value of German assets even more in the Japanese yen.
Should Japan worry?
Japan Finance Minister Katsunobu Kato clearly stated that Japan’s foreign properties are steadily increasing and this ranking does not show any big change. He said that the investment of Japanese companies is increasing internationally, especially in countries like America and UK. The reason for this is weak yen, which has made a deal of profit for companies to invest abroad.
what next?
Experts believe that Japan’s focus has now moved from foreign security (foreign bonds, shares etc.) to direct investment (directly in companies). This means that now Japanese investors cannot get out of it so easily after purchasing a company, like they used to sell bonds.
Donald Trump’s possible policies, tariffs and trade policy can also play a role in it. Some companies may increase their presence in America, while some may consider returning back to Japan.
ranking has changed, but strength is intact
Even though Japan has left the number 1 chair and has come to number 2, but his economic strength and hold in international investment is still strong. This is just a ranking game, the real story is the long -term strategy of companies, their share in foreign markets and how they increase their investment.
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