Japan is now the fourth largest economy in the world, Germany has taken third place.
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Tokyo: Japan is now the fourth largest economy in the world, Germany has overtaken it and taken the third place. According to government data, it is projected to lag behind the size of Germany’s economy in 2023. Analysts say the figures highlight how the Japanese economy is gradually losing its competitiveness and productivity. Japan’s aging population and low birthrates have resulted in a decline in the number of young people in the population.
In 2010, China snatched away from Japan the title of being the world’s second largest economy after America. Then Japan had slipped to third place. The International Monetary Fund had also predicted Japan to come in fourth place. Japan’s real GDP last year was a total of 4500 billion US dollars or about 591000 billion yen. Germany last month announced GDP (depending on currency conversion) of US$4400 billion or US$45000 billion.
The Japanese economy shrank at an annual rate of 0.4 percent in the October-December quarter, minus 0.1 percent from the previous quarter, according to Cabinet Office data on real GDP. Real GDP for 2023 grew by 1.9 percent compared to the previous year.
Both Japan and Germany built their economies through small and medium-sized businesses. Unlike Japan, Germany took concrete economic steps to tackle a strong euro and inflation. The weak yen also caused losses for Japan. Tetsuji Okazaki, an economics professor at the University of Tokyo, said the latest figures reflected the realities of a weakening Japan. Japan’s presence in the world is likely to diminish as a result.
“For example, many years ago Japan boasted of having a powerful automotive sector, but that advantage has also been eroded with the advent of electric vehicles,” he said. Okazaki said there is a gap between developed countries and emerging countries. The gap is decreasing. India is sure to overtake Japan in real GDP in a few years
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