Recent trends towards harmonising and internationalising business and economics studies in higher education are affecting the structure and content of programmes and courses, and necessitate more transparent and comparable information on students' economic knowledge and skills. In this study, we examine by linear multilevel regression modelling the current state of macroeconomic knowledge of higher education students in Germany and Japan, while controlling for the effects of key study-related aspects such as study progress and completion of economics courses. We assess macroeconomic knowledge using the internationally established Test of Understanding in College Economics, which has been adapted and validated for use in Germany and Japan. We found a significant positive correlation between students' level of knowledge and study progress in both countries, as well as varied gender-related and country-specific differences. Implications for assessment practices and future research are discussed.