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ECONOMY > Economic Indicators

Japan’s net foreign assets top 1,000 trillion yen in FY17; record investments made in the U.S.

  • May 26, 2018
  • , Sankei , p. 9
  • JMH Translation

The Finance Ministry announced on May 25 that as of the end of FY17, net foreign assets, derived by subtracting liabilities from overseas assets held by the Japanese government, private companies, and individual investors, were down by 2.3% from the previous year to 328.447 trillion yen, representing a decrease for three consecutive years. The main reason for this was the increase in foreign liabilities resulting from price increases in Japanese stocks and other financial instruments held by foreign investors.


On the other hand, active M&As by Japanese companies resulted in their foreign assets surpassing 1,000 trillion yen for the first time. A record amount of direct investments was made in the U.S.


The balance of direct investments in the U.S. grew by 4.5% to 55.3526 trillion yen as a result of corporate acquisitions and the increase in local production.


The Finance Ministry’s Foreign Exchange Markets Division points out that “a factor contributing to the increase was that Japanese carmakers and other companies built more factories and other facilities in the U.S.” after president Donald Trump began demanding that Japanese companies invest and create jobs in the U.S. (Abridged)

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