Germany overtakes Japan to become number 3 economy in the World
The year 2024 has not proved to be good for the global economy so far. On one hand, big and renowned companies are doing layoffs one after another. On the other hand, now the economic recession has increased its scope. After engulfing Germany last year, the economic recession has now reached Britain and has started looming over Japan as well. However, Germany has also got an advantage. The largest European economy has now overtaken Japan to become the world’s number-3 economy.
Size of GDP of Japan and Germany
Germany, Europe’s largest economy, fell into a mild recession for some time last year. Germany’s GDP will shrink by 0.3 percent in 2023 on a full year basis. At the same time, Japan’s economy registered a growth of 1.9 percent during the last year. Even after this, Germany has left Japan behind in terms of the size of GDP. According to statistics, the size of Japan’s economy is 4.2 trillion dollars, while the size of Germany’s economy is 4.5 trillion dollars.
India amongst five biggest economies of the world
Currently, the world’s largest economy is America, whose size is about 27 trillion dollars. China is in second place with an economy of about 17 trillion dollars. Japan was long the world’s third-largest economy, but has now slipped to fourth place. Germany has jumped one place and is now at third place instead of fourth. India is at fifth position with an economy of about 3.75 trillion dollars.
The biggest loss due to this factor
Japan’s loss of one place is mainly due to currency rate fluctuations. In fact, there has been a huge decline in Japan’s currency yen during the last 2 years. The value of the yen against the dollar has fallen by about 20 percent in these two years. The yen has fallen by about 7 percent in the last year i.e. 2023. This is the reason why despite registering a growth of about 2 percent, the size of Japan’s GDP in dollar terms has decreased.
Japan and Britain in recession
Japan may have to suffer losses in the coming days due to the slowing economy. Japan’s GDP declined by 0.1 percent during the December quarter. However, after adjusting the estimate for the September quarter, it was reduced by minus 0.8 percent. In this way, it can be said that Japan is technically in the grip of recession. Recession has also engulfed Britain. Britain’s GDP declined by 0.1 percent in the September quarter. Now there has been a decline of 0.3 percent in the December quarter. Technically, recession is considered if the GDP growth rate remains negative for two consecutive quarters.
