Japan experienced an unexpected economic recession at the end of last year, losing the title of the world’s third largest economy to Germany, on Thursday the 15th of February, reports Politico.
In the final quarter of 2023, Japan saw its economy fall by 0.4%, triggering a technical recession on the back of a 3.3% drop in the previous three months as well, according to the government.
Germany, with a GDP of 4.5 trillion US dollars,
is now the third largest economy, behind the US and China, and slightly ahead of Japan, which has a GDP of 4.2 trillion US dollars.
According to the Federal Statistical Office, the German economy shrank by 0.3% in 2023, driven by “rising interest rates and weaker domestic and foreign demand”.
However, already last October, the International Monetary Fund predicted that Germany’s GDP would exceed Japan’s in 2024, with the yen’s decline against the dollar still causing problems for politicians in Tokyo.
Although Germany is Europe’s largest economy, it last ranked third in 2007.
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