Germany overtakes Japan: Creditor status brings new risks!
Germany overtakes Japan: Creditor status brings new risks!
Deutschland - Germany has replaced Japan as the largest creditor state, which significantly changes the world's financial landscape. This event marks a historical moment, because it is happening for the first time in 34 years. Germany's net foreign assets have now risen to around 3.51 trillion euros, while Japan's net foreign assets, which was around 533.05 trillion yen (approx. 3.3 trillion euros) at the end of 2024.
Of course, the net foreign assets are more than a mere number. It describes the difference between the demands of the domestic people compared to abroad and the foreigners' liabilities towards Germany. A country is referred to as a creditor state if it has more assets abroad than domestic liabilities. Germany's net foreign assets corresponds to about 81 % of the annual GDP, while Japan's net foreign assets are 87.5 %.
economic effects
Germany's position as the leading believer state does not come without challenges. Economists express concerns that German companies tend to invest more abroad, whereas foreign companies in Germany are reserved. This could have an impact on the German economy, especially in times of geopolitical unrest, such as the risks associated with German investments in China.
Another important aspect is the trade balance. Germany recorded surpluses over many years, which thus contributed to strengthening its creditor position. Between 2015 and 2022, Germany was around $ 235 billion a year. Nevertheless, there was a significant absence from the excess from 2021 to 2022, which is primarily due to the increasing energy prices. The largest trade deficit in Germany was recorded with China in 2022 and was 85 billion euros.
global trade dynamics
The USA is remarkable at a global level because it has had the largest trade record deficit for decades. In 2022, the United States' trade balance sheet deficit of $ 1.31 trillion was shown, which makes up 5.1% of GDP. The largest deficit post was in China, with a deficit of $ 422 billion, followed by the EU with a deficit of $ 219 billion. The United States is also the largest sales market for import goods and have imported significantly more goods in recent years than they exported.The challenges and developments in the global trade landscape are therefore not only crucial for the USA, but also for countries like Germany, which as one of the largest energy exporters and trade surplus states in the world plays a key role. Persistent changes in trade relationships, influenced by geopolitical tensions and market conditions, make it important to observe these developments closely.
Further information on Germany's external assets and debts can be found in the reports of the Bundesbank as well as the detailed analysis on global trading dynamics href = "https://www.bpb.de/kurz-knapp/ numbers-und-fakten/globalization/52567/ausgewaehlte-handelsbilanzen/"> Federal Center for Political Education . For more about Germany's place in the global economy, please visit the page of DetailsOrt Deutschland Quellen