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.
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.