Japan's GDP to slide to the 4th-largest global economy amid weak currency

Posted on February 16, 2024   |  

Japan's latest economic data is expected to confirm its drop to the world's 4th-largest economy, driven by its weakening currency and aging population.

After a tough summer, Japan's economy is predicted to bounce back with a 1.2% growth in the fourth quarter.

According to the International Monetary Fund, Japan's economy shrank to around $4.2 trillion in 2023 from $6.3 trillion in 2012, mainly due to its currency losing value against the dollar.

Despite similar economic challenges, Germany's recent economic surpassing of Japan has received little attention amid ongoing economic issues.

Japan's population decline, especially evident since around 2010, has led to labor shortages expected to worsen due to a low birth rate.