2024-02-15T05:11:46+00:00
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/ The Japanese economy grew by 1.9 percent last year, official data showed on Thursday, but Germany still surpassed it to become the world’s third-largest economy, mainly due to the sharp decline in the value of the yen.
Japan’s nominal gross domestic product for 2023 was $4.2 trillion, compared with $4.5 trillion for Germany, according to figures released last month, government data showed.
The yen fell more than 18 percent in 2022 and 2023 against the dollar, including about 7 percent last year alone, in part because the Bank of Japan, unlike other major central banks, has maintained negative interest rates.
Both the Japanese and German economies depend heavily on exports, and although both face significant obstacles, Japan suffers more than Germany due to its severe labor shortage and declining population.
India, with its young population and high growth rates, is expected to overtake them to become the world’s third-largest economy after the United States and China later this decade.
Japan’s economy shrank 0.1 percent in the three months to December, according to preliminary data from the Cabinet Office, missing expectations for 0.2 percent growth.
According to official data, this is the second consecutive quarterly decline in production, after recording a 0.8 percent contraction in the quarter from July to September.