Germany is the third largest economy after Japan – 2024-02-17 05:44:39

The Asian country Japan has lost the position of the world’s third largest economy to Germany due to economic recession. US media Forbes reported this information on Thursday citing information released by the Japanese government.

According to the general formula of economics, if the economy contracts for two consecutive quarters, it can be said that the economic recession is going on. Preliminary data showed that Japan’s gross domestic product (GDP) shrank by 0.4 percent in the October-December quarter of last year. In the previous quarter, i.e. July-September quarter, the economy contracted by 3.3 percent.

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According to recent statistics, Japan’s economy will be worth about 4.2 trillion US dollars in 2023, while Germany’s economy will be worth 4.4 trillion.

According to the data released by Japan’s Cabinet Department, Japan’s GDP in 2023 will be four and a half trillion dollars. Germany’s GDP at the same time was 4.4 trillion dollars.

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The main problem in the economy of Japan and Germany is the decrease in the number of workers, the alarming decrease in the birth rate, the increase in the number of elderly people, etc. But Japan has more problems than Germany.

Last year their economy as a whole grew at a rate of 1.9 percent. But it has contracted in the last two quarters. Also, the Japanese currency, the yen, is the weakest among advanced economies. The main reason for this weakness was the loose monetary policy of the Bank of Japan.

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Analysts say, even if the recession is overcome, Japan’s growth will not increase much. The reason, they say, is Japan’s negative domestic savings rate. Japan, a country of 12.5 million people, is smaller than Germany with 8.3 million people. Japan is famous for manufacturing high-tech goods and cars.

For a long time, Japan was the world’s second largest economy after the United States. But now China is in that place.

Source: Deutsche Welle

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