Germany Overtakes Japan as Third-Biggest World Economy in Terms of Nominal GDP in 2023

MOSCOW (Sputnik) - Germany has overtaken Japan as the world's third-biggest economy in terms of nominal gross domestic product (GDP) in dollar terms in 2023, the Japanese cabinet's data showed on Thursday.

The government data showed that Japan's nominal GDP without adjustment for inflation in 2023 amounted to 591.48 trillion yen (some $4.21 trillion).

The Japanese news agency Kyodo reported that Germany's nominal GDP in 2023 amounted to $4.46 trillion. Japan lost its status as the world's third-largest economy to Germany in 2023 as it unexpectedly slipped into recession in the last quarter of 2023 due to a sharp drop in Japan's national currency, the yen, the report said.

Japanese media reported earlier that Japan's nominal GDP in dollar terms would significantly decrease due to the drop in value of the national currency. At the same time, Germany would see a significant growth in GDP against the background of a rapid increase in prices.

Earlier this month, the Organization for Economic Co-operation and Development worsened its forecast for Germany's GDP growth to 0.3% from 0.6% in 2024 and to 1.1% from 1.2% in 2025.