Fall in rank below Germany has been attributed to a weak yen and country’s ageing, shrinking population

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.

  • CluelessLemmyng@lemmy.sdf.orgEnglish
    0·
    5 months ago

    Japan’s economy is only going to get worse. I don’t think they’ve resolved their population decline and aging demographics.

    • Dagnet@lemmy.worldEnglish
      0·
      5 months ago

      If only they weren’t so xenophobic, then they could maybe receive more immigrants (would love to work there myself)

      • luckystarr@feddit.deEnglish
        02·
        5 months ago

        In the general public I don’t think it’s pure xenophobia, but in large parts a fear of not being able to communicate. The behavior they expose then is almost indistinguishable from xenophobia and for the receiving person in no way better, though when a foreign looking person is able to communicate, most hesitations will fall away.

        I know that this is obviously not applicable to 100% of the population, but so is the other belief. There are obviously also die-hard foreigners hating nationalists, as in every country.