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Japan's International Investment Position at Year-End 2013*1

  • *1This is an English translation of the Japanese original released on May 30, 2014.

July 22, 2014
International Department
Bank of Japan

Summary

A. Developments in Japan's International Investment Position (IIP) at Year-End 2013

Japan's external financial assets increased in 2013 due to an increase in their yen value reflecting the yen's depreciation compared to the previous year end as well as due to net acquisitions of foreign financial instruments by Japanese investors. Meanwhile, Japan's external liabilities also increased in 2013 due to a rise in Japanese equity prices and net acquisitions of Japanese financial instruments by foreign investors. Japan's net asset position increased in 2013 as the increase in assets exceeded that in liabilities. Net assets stood at 325.0 trillion yen at year-end 2013, up from 296.3 trillion yen at year-end 2012.

The assets, liabilities, and net assets at year-end 2013 registered all record highs for the period that comparable data are available.1

  •  1  Comparable data are available from year-end 1995 for assets and liabilities and from year-end 1986 for net assets.
  • Figure 1

B. Major Features of Each Category

(1) Direct investment (assets: 117.7 trillion yen; liabilities: 18.0 trillion yen)

Outward direct investment (assets) increased by 27.9 trillion yen or 31.1 percent.
Inward direct investment (liabilities) remained more or less unchanged.

(2) Portfolio investment (assets: 359.2 trillion yen; liabilities: 251.9 trillion yen)

Outward portfolio investment (assets) increased by 54.1 trillion yen or 17.7 percent.
Inward portfolio investment (liabilities) increased by 71.4 trillion yen or 39.5 percent.

(3) Financial derivatives (assets: 8.2 trillion yen; liabilities: 8.7 trillion yen)

Financial derivatives assets increased by 3.6 trillion yen or 77.5 percent.
Financial derivatives liabilities increased by 3.3 trillion yen or 62.5 percent.

(4) Other investment (assets: 178.4 trillion yen; liabilities: 193.6 trillion yen)

Other investment assets increased by 25.5 trillion yen or 16.7 percent.
Other investment liabilities increased by 31.6 trillion yen or 19.5 percent.

(5) Reserve assets (assets: 133.5 trillion yen)

Reserve assets increased by 24.1 trillion yen or 22.0 percent.

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