Japan’s overseas wealth grows, but global rank drops as rivals surge ahead

Japan still holds the biggest pile of money invested abroad, but its spot in the global ranking just slipped—again. In 2025, the country’s net external assets, which include everything from stocks and bonds to property overseas, hit a new high of 561. 75 trillion yen ($3. 53 trillion). That’s up 4. 4% from last year. For eight straight years, Japan has been adding to this pile, mostly because its companies keep buying up businesses outside the country and the value of those investments keeps rising. Yet despite this record wealth, Japan lost its long-held second-place spot in the world creditor rankings. China now sits firmly in second place with 636. 3 trillion yen in net assets, pushing Japan down to third. Germany remains on top with 675. 5 trillion yen, keeping its lead thanks to steady trade surpluses. These two nations have steadily grown their foreign wealth by selling more than they buy every year.So why isn’t Japan rising in the ranks even though its overseas wealth keeps growing? The answer lies partly in its own backyard. While Japan’s investments abroad are worth more, foreign investors are also pouring money into Japanese stocks and bonds. This has increased Japan’s liabilities—money it owes to outsiders—by a huge 62. 2 trillion yen. In short, Japan is both lending and borrowing on a massive scale, and its borrowing is growing faster than its lending in the eyes of global record-keepers. The story isn’t just about Japan’s decline. It’s a snapshot of how global economic power is shifting. China and Germany have built their wealth through manufacturing exports and trade surpluses. Japan, once a rising star in global finance, now faces a more crowded and competitive landscape where being rich abroad doesn’t always mean being ranked higher.