Japan's GDP will fall to the world's fourth
According to Japan's Kyodo News Agency reported on the 23rd, the International Monetary Fund (IMF) recently predicted: 2023 Japan's nominal gross domestic product (GDP) will fall from the world's third to fourth, was overtaken by Germany. The reason for this change is, on the one hand, the depreciation of the yen leading to a shrinking GDP, and on the other hand, higher price increases in Germany.
GDP is heavily influenced by the exchange rate, so the actual ranking will be swayed by fluctuations in the exchange rate by the end of the year. However, Japan has a long history of sluggish economic growth, and the size of its economy is closely related to its international influence. Once overtaken by Germany, Japan's presence will also decline further.
According to data released by the IMF, Japan's nominal GDP will be around $4.2308 trillion by 2023, down 0.2% from last year. In contrast, Germany's nominal GDP is expected to grow by 8.4% to about $4.4298 trillion.
In any case, the change also gives Germany a huge opportunity to become the third largest economy in the world. The German economy has always been a strong performer, with a strong manufacturing sector and an excellent level of technology making it the economic engine of Europe. If Germany is able to maintain this growth momentum, it will further enhance its position in the world.