Germany surpasses Japan to become the world's third largest economy

The yen depreciated by more than 18% against the USD in 2022 and 2023, losing approximately 7% in 2023 alone, due to the Bank of Japan maintaining negative interest rates, contrary to the general trend of other central banks continuously raising interest rates.

Unloading cargo at the port of Cuxport, Germany. Photo: Cuxport.de

Germany has overtaken Japan to become the world's third-largest economy , after the United States and China. Data released by the Japanese government on February 15th showed that Japan's nominal gross domestic product (GDP) in 2023, measured in USD, was $4.2 trillion, while Germany's was $4.5 trillion.

Both economies are heavily reliant on exports and face numerous major challenges, but Japan is in a more difficult situation than Germany due to a severe labor shortage stemming from a declining population and very low birth rates.

India, with its young and growing population and higher growth rate, is projected to surpass both Germany and Japan to become the world's third-largest economy by the end of this decade.

According to preliminary data released by the Japanese Cabinet Office, although the Japanese economy grew by 1.9% in 2023, it contracted by 0.1% in the fourth quarter of 2023. This marks the second consecutive quarter of declining output, following a 0.8% decrease in the third quarter of 2023. The yen depreciated by more than 18% against the US dollar in 2022 and 2023, losing approximately 7% in 2023 alone due to the Bank of Japan maintaining negative interest rates, contrary to the general trend of other central banks continuously raising interest rates.

PHUONG AN

Source: https://www.sggp.org.vn/duc-vuot-nhat-ban-tro-thanh-nen-kinh-te-lon-thu-3-the-gioi-post726828.html