China may have surpassed Japan to become the world’s second-largest economy, but Japan continues as the world’s top creditor nation.
Japan’s foreign investments and assets climbed to a record in 2014, making this the 24th consecutive year that Japan has been the No.1 creditor country.
Japan’s net overseas assets grew 13% to 366.9 trillion yen ($3 trillion) last year. However, the yen’s decline affected the total by boosting gross holdings 19% to 945.3 trillion yen, according to finance ministry data released in Tokyo on Friday, Bloomberg reported. Since 2012, the yen has fallen 28% against the dollar. Liabilities rose 23% to 578.4 trillion yen.
Japan not only had more net assets than China, 71% more to be exact, but it topped Germany too. The Japanese Finance Ministry said China’s net overseas assets equalled 214.3 trillion yen last year, while Germany’s totaled 154.7 trillion yen.
The ministry said the U.S. was the most indebted nation in the Group of Seven nations with 834.3 trillion yen in net liabilities last year. This is partly due to the desire of other nations to hold U.S. debt, with Japan and China the two biggest foreign owners of treasuries, according to Bloomberg.