Germany Overtakes Japan In GDP

Germany’s economy has been slowing down for several months, but it has overtaken Japan to third place in the GDP rankings, behind the two giants – the USA and China.

This was reported by the Italian publication Il Sole 24 Ore, which explains that this fact is essentially caused by the devaluation of the yen, defining the overtaking solely as a “statistical feat.” Germany’s GDP will contract by 0.4% in 2023, but in terms of GDP measured in US dollars, it will rise to third place in the International Monetary Fund’s ranking.

Meanwhile, Japan’s economy is growing at 2%, but the yen has lost purchasing power against the dollar over the course of 2023, while the euro has remained stable. For this reason, according to IMF estimates, Germany’s GDP this year will be $4.430 billion, and Japan’s GDP will be $4.230 billion. Among other things, the depreciation of the Japanese currency is one of the reasons for the growth in exports, which favors the Tokyo economy.

In any case, the rankings of Germany and Japan are destined not to last for long. In fact, the IMF estimates that India will overtake both economies between 2026 and 2027.