Officials said Tuesday that Japan lost its position as the world’s top creditor after 34 years, falling behind Germany, even as its net external assets hit a record high last year.

Japan’s net external assets as of the end of last year stood at 533.05 trillion yen ($3.7 trillion), up 12.9 per cent from a year earlier, according to data released by the finance ministry and reported by AFP.

However, that was below Germany’s 569.65 trillion yen, meaning Japan lost the top spot it has held since 1991, the finance ministry said.

The government played down the development.

“Net external assets are determined by the accumulation of various factors, including changes in the prices of financial assets and debts as well as the balance of payments,” spokesman Yoshimasa Hayashi said.

“In light of these points and the fact that Japan’s net foreign assets have been steadily increasing, we do not believe that the change in ranking alone should be taken as a sign of a major change in Japan’s position,” Hayashi told reporters.

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Mainland China remained in third place with 516.28 trillion yen, followed by Hong Kong’s 320.26 trillion yen and Norway’s 271.83 trillion yen, according to the ministry’s data.

For Japan, a weaker yen contributed to increases in both foreign assets and liabilities, but assets grew at a faster pace, driven in part by expanded business investment abroad, according to the data.