Japan faces recession, slips down world's third largest economy

Japan overtook China's economy in 2010. During these years, Japan was on the verge of becoming the world's largest economy, all estimates were pointing in this direction, but the recession continuing since last year has put a big brake on the country's economic pace.

Germany has now become the third largest economy by overtaking Japan. Due to this, the path for the progress of the Indian economy has become even clearer. Due to slowing down of Japan's growth rate, the size of GDP is also declining. Looking at the current situation, it is now clear that India will soon reach the third position.

Japan's status in the global economy is decreasing every day. Now it has slipped in the ranking of global economy and has become the fourth largest economy. Recent data on Japan's growth rate is confirming this. According to experts, the impact of currency weakness and aging population of Japan is being seen on Japan's economy.

Japan's annual growth in the fourth quarter was 1.2% and the figures for calendar year 2023 were lower than Germany in dollar terms. These figures have been released today only. On the other hand, it is good news for India that the Indian economy will overtake Germany and Japan in the next few years.

India is going to become the third largest economy because of the strength of its youth. On one hand, countries like Germany and Japan are witnessing a rapid decline in the working age population, while the workforce in India is increasing. According to the Organization for Economic Co-operation and Development (OECD), by 2022, Japan's working-age population is about 58%, while Germany's is about 63%, which has been steadily declining. In contrast, India's working age population has reached about 67%, and is continuously increasing.

In comparison to India, both Japan and Germany are showing much slower growth than before. IMF data also clearly shows that India's growth is much higher than these two countries. Therefore, by the year 2026, we are expected to surpass Germany and become the third largest economy. At that time, India's GDP is expected to reach close to $5.5 trillion.