Japan loses crown as world’s third-largest economy after it slips into recession
Japan loses crown as world’s third-largest economy after it slips into recession
Fall in rank below Germany has been attributed to a weak yen and country’s ageing, shrinking population
Japan has been eclipsed by Germany as the world’s third-biggest economy and has slipped into recession, according to data released Thursday, as the country battles a weak yen and an ageing, shrinking population.
Japan’s economy, now the world’s fourth-biggest, grew 1.9% in 2023 in nominal terms – meaning it is not adjusted for inflation – but in dollar terms its gross domestic product (GDP) stood at $4.2tn compared with $4.5tn for Germany.
The shift, coming more than a decade after it ceded second place to China, has been attributed to the yen’s sharp falls against the dollar over the past two years. A weaker yen eats into profits on exports when earnings are repatriated. The Japanese currency dropped by almost a fifth against the US dollar in 2022 and 2023, including a 7% fall last year.
Japan's economy is only going to get worse. I don't think they've resolved their population decline and aging demographics.
If only they weren't so xenophobic, then they could maybe receive more immigrants (would love to work there myself)
In the general public I don't think it's pure xenophobia, but in large parts a fear of not being able to communicate. The behavior they expose then is almost indistinguishable from xenophobia and for the receiving person in no way better, though when a foreign looking person is able to communicate, most hesitations will fall away.
I know that this is obviously not applicable to 100% of the population, but so is the other belief. There are obviously also die-hard foreigners hating nationalists, as in every country.
Pretty soon they'll be eclipsed by California, who had a $4.0T GDP last year.
Since when is California considered to be a country?
It is frequently calculated as an individual economy due to its economic force. By comparison, the GDP of Japan was only $4.2 trillion.
ahem
Edit: Texas had a GDP of $2.5 trillion, and New York had a GDP of $2 trillion. Germany had a GDP of $4.8 trillion, the UK had GDP of $3.8 trillion, and France had a GDP of $2.8 trillion. The Russian federation had a GDP of $2.2 trillion.
These these are 2023 numbers. Just for comparison. 
This is the best summary I could come up with:
Japan has been eclipsed by Germany as the world’s third-biggest economy and has slipped into recession, according to data released Thursday, as the country battles a weak yen and an ageing, shrinking population.
While Japanese carmakers and other exporters have benefited from a weak yen – which makes their goods cheaper on the international market – the country’s labour crunch is worse than Germany’s, and it is struggling to address a low birthrate.
The failure of government-led attempts to boost the birthrate means chronic labour shortages are expected to worsen, even as the country welcomes a record number of foreign workers.
The economy revitalisation minister, Yoshitaka Shindo, told reporters that Germany leapfrogging Japan showed it was “imperative” to promote structural reforms, including getting more women into full-time work and lowering the barriers to foreign investment.
Thursday’s data showed that real GDP – the total value of goods and services – shrank 0.1% in the last three months of 2023 compared to the previous quarter, due to weak spending by households and businesses, according to the cabinet office.
While Japan’s recent slip to fourth place has been attributed to dramatic currency moves, losing third spot to a troubled German economy will deal a blow to its self-esteem and to the already unpopular prime minister, Fumio Kishida.
The original article contains 671 words, the summary contains 215 words. Saved 68%. I'm a bot and I'm open source!
Isn't Germany also officially in recession?
And you get a crown for 3rd place?
Yes, a bronze one.