This is despite the fact that the economic growth rate for the whole of 2023 will be 1At 9%, Japan's nominal GDP is still lower than Germany's, thus ceding its position as the third largest economy. But the German economy is sluggish, falling by 03%。
Japan is now the world's fourth-largest economy, behind Germany. Before 2010, Japan was the world's second-largest economy. Later, it was overtaken by our country. Japan's nominal GDP last year was 42 trillion dollars, Germany is 44 trillion or 4$5 trillion - depending on the exchange rate.
The United States remains the world's largest economy, with a GDP of 2794 trillion dollars, 17 trillion in our country$5 trillion.
The depressed yen is a key factor, as nominal GDP is compared in US dollars. But economists point out that Japan's relative weakness still reflects a declining population and stagnant productivity and competitiveness.
Japan's economy fell by 0.0 percent annualized in the fourth quarter of 2023, according to official data released on Thursday4%, down 01%。In the third quarter of 2023, the Japanese economy also experienced a decline. Two consecutive quarters of declines are considered an economy entry"Technical recession"。
However, Nikkei pointed out that Japan's real GDP for the whole of 2023 increased by 19%, nominal GDP growth of 57%, both for the third consecutive year of growth. On a calendar year basis, Japan's economy is slowly recovering from the pandemic.
Japan has experienced this in history"An economic miracle", from the ruins of World War II to become the second largest economy after the United States. This miracle lasted through the 70s and 80s. However, for most of the past 30 years, Japan's economy has grown only modestly, especially after the bursting of the financial bubble in 1990.
Both the Japanese and German economies rely on the solid productivity of strong small and medium-sized enterprises.
Similar to Japan in the 60s and 80s, Germany's economy has been quite strong in the past, dominating the global market with high-end products such as luxury cars and industrial machinery, and exports accounting for half of the country's economy.
However, last year, Germany's economic growth was sluggish, with a year-on-year increase of 02%, 0A 3% decline. The reasons for this include the decline in investment in construction, machinery and equipment, and weak foreign trade demand. If it declines again in the first quarter of this year, it will also enter a so-called technical recession. In 2023, the German economy as a whole will decline by 03%。
German Economy Minister Habeck said on Wednesday that this year's growth** was only 02%。
Japan's population has been declining and aging for many years, and there are few immigrants, and the current population is about 12.6 billion. Germany has a population of around 85 million today.
Tetsuji Okazaki, a professor of economics at the University of Tokyo, told The Associated Press that Japan's declining economic status could affect Japan's activity on the international stage. "A few years ago, Japan prided itself on being powerful, for example. But with the advent of the electric car era, this advantage has also been shaken. "
In addition to demographic factors, another factor contributing to Japan's slow economic growth is the stagnation of wage levels. Many households are reluctant to spend. At the same time, the business community has invested heavily in fast-growing economies overseas and declined in domestic markets.
Private consumption, an important pillar of the Japanese economy, is now cracking. Last year, personal consumption fell for three consecutive quarters.
Some experts expect Japan's GDP to continue to decline in the first quarter of this year, due to weak demand and the suspension of production of Toyota vehicles in addition to the decline in consumption. Capital Economics, an economic research firm, expects the Japanese economy to grow from 1 in 20249% to about 05%。