Signal Japan posted the largest wealth upswing, driven mostly by valuation gains after decades of near-zero inflation

Summary

MGI finds that Japan recorded the largest upswing in household wealth growth among the major economies it decomposes for 2025. Most of that improvement came from valuation gains rather than from new investment. The report reads this as a significant turning point for an economy that experienced decades of near-zero inflation. Currency and deposits make up more than a third of Japanese household wealth, one of the features that distinguishes its household balance sheet from those of the United States and Canada. The United States also saw faster wealth growth, again largely because of valuation gains, while China, France, and Germany moved in the opposite direction.