Japan fell behind China to become the world's third-largest net creditor in 2025, despite its net external assets hitting a record high, the Finance Ministry said on Tuesday.
Net external assets held by Japan's government, businesses and individuals rose 4.4% from a year earlier to 561.75 trillion yen ($3.53 trillion), marking the eighth straight year of growth.
Germany remained the top creditor with 675.5 trillion yen, followed by China at 636.3 trillion yen. Japan slipped from second to third place.
Japan's relative decline was partly due to a surge in external liabilities, driven by strong stock market performance and increased foreign holdings of Japanese securities.
