Japan's net external assets hit a record 471.31 trillion yen ($3 trillion) in 2023, as a sharp drop in the yen inflated the value of foreign stocks, bonds and other holdings in yen terms, while increased direct investment overseas by Japanese firms also gave the total a boost, government data showed Tuesday.
The nation's gross assets increased 51.31 trillion yen, or 12.2 percent from 2022, posting a record high for the fifth straight year. Japan was the world's largest creditor for the 33rd straight year in yen terms, ahead of Germany and China, according to the International Monetary Fund and other sources.
The yen's weakness persisted in 2023, becoming a source of concern for importers and households as it boosts the costs of imported energy and raw materials. But it also inflates overseas profits for Japanese exporters and the value of foreign assets such as stocks and bonds in yen terms.
The net balance takes into account external assets held by Japan and the country's liabilities, or assets held by foreign investors.
External assets, held by the Japanese government, companies and individual investors, rose 148.68 trillion yen or 11.1 percent to 1,488.34 trillion yen.
The figure, marking the 15th straight year of increase, reflects a roughly 76 trillion yen boost in the value of foreign assets in yen terms. The yen was 7.0 percent weaker against the U.S. dollar in 2023 than the year before.
Japan's overseas liabilities, meanwhile, rose 97.37 trillion yen, or 10.6 percent, to 1,017.04 trillion yen, marking the fifth straight year of increase.
Foreign investors increased their holdings of Japanese stocks and investment funds last year when the 225-issue Nikkei stock index jumped about 28 percent to a 34-year high.
While Japan was the top creditor, Germany came second with 454.77 trillion yen. China ranked third with 412.70 trillion yen.
