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
    13·
    9 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
      13·
      9 months ago

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

      • tiredofsametab@kbin.run
        41·
        9 months ago

        I mean, getting a work visa in Japan isn’t really all that difficult. You basically need a 4-year degree and a company to sponsor you.

      • luckystarr@feddit.deEnglish
        11·
        9 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.

        • Dagnet@lemmy.worldEnglish
          61·
          9 months ago

          I live in the city with the most japanese descendants outside of japan, Im half japanese myself. A lot of japanese here went back to Japan (and yes, they knew how to speak japanese) only to be met with xenophobia. Im talking full blooded japanese people, only reason they were rejected was because they were born in Brazil. You somehow seem to know more than me in the subject, I sure hope its from first hand experience if you are claiming those things.

    • xmunk@sh.itjust.worksEnglish
      81·
      9 months ago

      Yea - it’s like a monarchy… eldest son gets the throne, second gets a sack of raisins and the third son gets the crown. Just like how monarchies work.

      • gregorum@lemm.eeEnglish
        7·
        9 months ago

        It is frequently calculated as an individual economy due to its economic force. By comparison, the GDP of Japan was only $4.2 trillion.

        ahem

        Edit: Texas had a GDP of $2.5 trillion, and New York had a GDP of $2 trillion. Germany had a GDP of $4.8 trillion, the UK had GDP of $3.8 trillion, and France had a GDP of $2.8 trillion. Just for comparison. 

  • AutoTL;DR@lemmings.worldBEnglish
    2·
    9 months ago

    This is the best summary I could come up with:

    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.

    While Japanese carmakers and other exporters have benefited from a weak yen – which makes their goods cheaper on the international market – the country’s labour crunch is worse than Germany’s, and it is struggling to address a low birthrate.

    The failure of government-led attempts to boost the birthrate means chronic labour shortages are expected to worsen, even as the country welcomes a record number of foreign workers.

    The economy revitalisation minister, Yoshitaka Shindo, told reporters that Germany leapfrogging Japan showed it was “imperative” to promote structural reforms, including getting more women into full-time work and lowering the barriers to foreign investment.

    Thursday’s data showed that real GDP – the total value of goods and services – shrank 0.1% in the last three months of 2023 compared to the previous quarter, due to weak spending by households and businesses, according to the cabinet office.

    While Japan’s recent slip to fourth place has been attributed to dramatic currency moves, losing third spot to a troubled German economy will deal a blow to its self-esteem and to the already unpopular prime minister, Fumio Kishida.

    The original article contains 671 words, the summary contains 215 words. Saved 68%. I’m a bot and I’m open source!