Current Affairs - International - Discussion

In 2024, Germany surpassed Japan to become the world’s largest creditor nation, ending Japan’s 34-year dominance in this category. The shift was primarily driven by Germany's rising current account surplus—reaching €240 billion—and favourable currency movements, particularly the appreciation of the euro against the Japanese yen. These factors increased the value of Germany’s foreign assets relative to Japan’s. Although Japan achieved a record net asset value, Germany’s higher growth and asset valuation led to a total of ¥569 trillion ($3.9 trillion), surpassing Japan’s ¥533 trillion ($3.7 trillion). This development reflects evolving global trade balances and investment flows.