Japan’s GDP has now reached 4.2 trillion dollars, while the size of Germany’s GDP, which has reached the number-3 position, has reached 4.5 trillion dollars, surpassing it. Japanese economists expressed their estimates and said that India is certain to overtake Japan in the future.
The crown of the world’s third largest economy was snatched away from Japan and Germany has now become the third largest economy, leaving it behind. This has come to light in the GDP figures of many countries on Thursday. There has been a decline in Japan’s gross domestic product (GDP) for the last two quarters and this has affected its ranking. Along with this, the situation has also worsened due to the fall in the value of Yen against the US Dollar.
Japan fell into recession
Due to the decline in Japan’s GDP, this country is now in the grip of recession (Japan Recession) and the effect of this is that Japan has lost its position as the third largest economy in the world. Japan’s GDP has now reached 4.2 trillion dollars, while the size of Germany’s GDP, which has reached the number-3 position, has reached 4.5 trillion dollars, surpassing it. In the last October-December period, Japan’s gross domestic product (GDP) has fallen by 0.4% on an annual basis. Earlier in the month of October, the International Monetary Fund (IMF) had estimated that Germany may emerge as the world’s third largest economy when measured in US dollars, while Japan may lag behind.
Country’s currency Yen continues to fall
According to the report, the figures released by the Cabinet Office of Japan also indicate that the country has lost its position as the third largest economy in the world. Talking about Japanese currency, the yen is continuously weakening against the dollar. While in the year 2022 it had fallen by 20 percent, in the year 2023 it has seen a decline of almost 7 percent. Due to all these reasons, Japan has now lost the title of third largest economy.
These are the major reasons for decline in GDP
Japan’s economy unexpectedly slipped into recession after a second-quarter decline due to weak domestic demand, prompting analysts tracking the central bank to emphasize that When will the country’s negative interest rate policy end? It is noteworthy that the decision of the Bank of Japan to maintain negative interest rates has also played an important role in the fall of the Japanese currency yen.
What are Japanese economists saying?
Tetsuji Okazaki, professor of economics at Tokyo University, has said that the new GDP figures of Japan are going to reflect the realities of a weakening Japan and as a result, Japan’s presence in the world is likely to reduce. He further gave an example saying that many years ago, Japan boasted a powerful auto sector, but with the advent of electric vehicles it has lost profits.
India is certain to overtake Japan!
On one hand, these ups and downs are being seen in the ranking of the world’s top economies, on the other hand, the path ahead is becoming easier for India. The Indian economy remains the fastest growing economy in the world. With the change in Japan’s ranking, Okazaki has also said that the gap between developed countries and emerging countries is reducing, and in a few years, India is sure to overtake Japan in terms of nominal GDP.
If we look at the data released on World of Statistics, according to IMF, in the year 2028, China is predicted to become the number-1 economy with 43.89 trillion dollars. So India will be the third largest economy with 19.65 trillion dollars.
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