When converted to US dollars, Japan 4.2 trillion < Germany 4.4 trillion
Asahi cites the low yen as the reason, saying, “It will be difficult to reverse this year.”
Japan’s public broadcaster NHK and Asahi Shimbun reported on the 15th that Japan’s nominal gross domestic product (GDP) last year fell to fourth place in the world, behind Germany.
According to NHK, Japan’s Cabinet Office announced the 2023 GDP on this day. Nominal GDP was 591.4 trillion yen, an increase of 5.7% from the previous year.
When converted to US dollars, it becomes 4.2 trillion dollars. This is less than Germany’s $4.4 trillion. It fell to 4th place in the world after being pushed out by Germany. It has been 55 years since we fell behind Germany.
In terms of economic size in 1968, Japan surpassed West Germany and ranked second after the United States. Its share of world GDP slumped to 17.8% in 1995. In 2010, it fell to third place behind China.
Asahi analyzed that the reason Japan fell to fourth place was “historical low yen.” “The average exchange rate in 2023 is 1 dollar = 140.5 yen, and the yen has weakened by about 9 yen compared to the previous year’s average,” he said. “Recently, the yen has been weakening even more. “If this continues, it looks like it will be difficult for Germany to turn the tables again this year,” he explained.
Japan’s nominal GDP growth rate last year was positive for three consecutive years. Personal consumption and facility investment increased. Exports also increased, especially automobiles. The real growth rate, reflecting the impact of prices, was 1.9%.
It was announced that Japan’s real account adjustment, excluding the impact of GDP price fluctuations, in the fourth quarter of last year (October to December) decreased by 0.1% compared to the previous quarter. The annual rate was ?0.4%.
Following the third quarter of last year (July-September), negative growth continued for two consecutive quarters.
This GDP growth rate fell short of market expectations. It was significantly below the 1.0% annual growth rate predicted by the private sector compiled by QUICK, a financial information company affiliated with Nikkei.
NHK cited personal consumption as the main reason for the economy’s negative growth in the fourth quarter of last year. Personal consumption was 0.2%. Consumption of food and other items has decreased due to high inflation, and sales of winter clothing have also decreased. Consumption of services such as eating out also decreased.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.