Japan, which used to be the 3rd largest economy in the world, has lost its position to Germany due to the economic recession in the country.
Recent data released on 15 February explained that Japan’s economy increased by 1.9% last year losing its position to Germany.
Now, Japan has moved to 4th place in terms of countries with largest economy in the world.
In 2023, Japan’s GDP has been projected to reach ¥591.48 trillion ($4.2 trillion). Average growth is estimated at 5.7. On the other hand, Germany’s GDP grew by 6.3%.
It stands at 4.12 trillion euros ($4.46 trillion). Japan’s GDP shrank 3.3 percent in the third quarter and an annual average of 0.4 percent.
Impact of economic recession
Due to the economic slowdown in Japan, the price of food, fuel and other basic things increased in the country, and their consumption decreased by 0.2 percent. 94 percent of Japan’s fuel needs are imported.
Japan’s undersea earthquake in January was the main cause of its economic slowdown and reports said that the people stopped spending due to natural disasters. It noted that private consumption has slowed and market expectations have remained flat.
Countries with largest economy
America is in the world’s first place with a largest largest economy.
China is the second largest economy followed by Japan and Germany was the fourth largest economy.
However, Japan has lost the 3rd place to Germany due to the economic recession in Japan.
