Japan is no longer the third-largest economy in the world. The Asian country has lost that position to Germany, after contracting for the last six months of 2023 and entering a recession. Official data shows that Japan's economy unexpectedly shrank due to weak domestic demand. This has raised uncertainty about the central bank's plans to exit its ultra-easy monetary policy this year.
00:00 Japan has lost the crown of the third largest economy in the world and Germany has become the third largest economy, leaving it behind.
00:08 On Thursday, the figures of GDP of all countries were revealed and since the last two quarters, the decline in Japan's GDP has been going on and its impact has also been on its ranking.
00:18 In addition, the situation has worsened due to the fall in yen, value compared to the US dollar, although it is being considered a good opportunity for India. How? Let's understand later, but first let's know how Japan's economy has deteriorated and what to say about the exports.
00:33 Due to the decline in Japan's GDP, the country has now come under the grip of a recession and its impact is that Japan has lost the third largest economy in the world.
00:43 Japan's GDP has now reached $4.2 trillion, while it has fallen to 3rd place, Germany's GDP has become $4.5 trillion.
00:54 In the period of October-December, Japan's GDP has fallen by 0.4% on an annual basis.
01:01 Prior to this, IMF had predicted in October that if the US dollar goes up, Germany can emerge as the third largest economy in the world and Japan can be left behind.
01:12 According to the report, the data released by the Japanese Cabinet Office also indicates that the country has lost its third largest economy in the world.
01:23 In the year 2022, where it was broken by 20%, in the year 2023 it fell by about 7%.
01:36 Due to all these reasons, Japan has lost its third largest economy.
01:41 Due to the fall in domestic demand, Japan's economy has now come under the grip of a recession.
01:48 This forced the central bank to emphasize that when will the country's negative interest rate policy end?
01:57 Bank of Japan's decision to keep the negative interest rate policy in place has also played an important role in the fall of the Japanese currency yen.
02:12 In addition, experts say that Professor Tetsuji Okajaki at Tokyo University has said that the new figures of Japan's GDP are weakening.
02:24 As a result, the chances of Japan's presence in the world are also reduced.
02:29 He said that many years ago, Japan claimed to be a powerful auto sector, but with the arrival of electric vehicles, it has now become far from profit.
02:39 Because Japan has always been seen as a very strong country for the auto sector, but after the arrival of electric vehicles, Japan had to suffer a loss.
02:49 Now, on the one hand, where the world's top economy is in the ranking, the road ahead for India is getting easier.
02:58 India's economy is said to be the fastest-growing economy in the world.
03:03 In addition to the change in Japan's ranking, Okajaki has also said that the gap between developed and emerging countries is now decreasing.
03:12 In a few years, India's nominal GDP will surpass Japan's.
03:22 Now, if we talk about the top economies, IMF has projected that the biggest economy in 2028 will be China.
03:31 China's top economy is expected to be $43.89 trillion, followed by the US's $32.69 trillion, and then India's third-largest economy in 2028.
03:50 The economy of the US will be $19.65 trillion, followed by Japan's $7.3 trillion economy, and then Germany's $6.55 trillion economy.
04:05 So this project has been done that in 2028, it can change like this.
04:09 So far, the US is at the top, followed by China, Germany, Japan, and India. Now we have to see how much benefit India gets from the decline in Japan's economy and how India's economy grows.
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