2024-02-15 17:26:30
Germany has wrested from Japan the symbolic title of the third largest economic power, according to preliminary data on Japanese GDP published today, cited by France Presse.
Japan’s nominal GDP in 2023 was about $4,200 billion, compared to about $4,500 billion for Germany, whose nominal GDP was boosted by domestic inflation last year. But in real terms, ie. excluding the impact of inflation, Japan’s GDP accelerated last year (+1.9% versus 1% in 2022), while the German economy shrank by 0.3%, according to official data published in January, BTA writes.
As an exporter, Germany is suffering from weak foreign demand, energy costs for its large manufacturing sector and interest rates raised by the European Central Bank (ECB) in an attempt to tackle inflation. Germany’s deteriorating economic situation means that its new title of third world economic power, promised to it since October last year by the forecasts of the International Monetary Fund (IMF), is seen as fraudulent – especially given that it is possible after several years for India to overtake both Japan and Germany, notes AFP.