Fall in rank below Germany has been attributed to a weak yen and country’s ageing, shrinking population

Japan has been eclipsed by Germany as the world’s third-biggest economy and has slipped into recession, according to data released Thursday, as the country battles a weak yen and an ageing, shrinking population.

Japan’s economy, now the world’s fourth-biggest, grew 1.9% in 2023 in nominal terms – meaning it is not adjusted for inflation – but in dollar terms its gross domestic product (GDP) stood at $4.2tn compared with $4.5tn for Germany.

The shift, coming more than a decade after it ceded second place to China, has been attributed to the yen’s sharp falls against the dollar over the past two years. A weaker yen eats into profits on exports when earnings are repatriated. The Japanese currency dropped by almost a fifth against the US dollar in 2022 and 2023, including a 7% fall last year.

  • @CluelessLemmyngEnglish
    18•10 months ago

    Japan’s economy is only going to get worse. I don’t think they’ve resolved their population decline and aging demographics.

    • @Dagnet@lemmy.worldEnglish
      15•10 months ago

      If only they weren’t so xenophobic, then they could maybe receive more immigrants (would love to work there myself)

      • tiredofsametab
        2•10 months ago

        I mean, getting a work visa in Japan isn’t really all that difficult. You basically need a 4-year degree and a company to sponsor you.

          • tiredofsametab
            3•10 months ago

            Those things are achievable. Another option is to come on a student visa to either language school or university and work from that angle.

          • tiredofsametab
            2•9 months ago

            Well, that’s true. The other option is to save up and move to a country where the cost of education is super low/free and then either stay there or move on to Japan.

      • @luckystarr@feddit.deEnglish
        0•10 months ago

        In the general public I don’t think it’s pure xenophobia, but in large parts a fear of not being able to communicate. The behavior they expose then is almost indistinguishable from xenophobia and for the receiving person in no way better, though when a foreign looking person is able to communicate, most hesitations will fall away.

        I know that this is obviously not applicable to 100% of the population, but so is the other belief. There are obviously also die-hard foreigners hating nationalists, as in every country.

        • @Dagnet@lemmy.worldEnglish
          7•10 months ago

          I live in the city with the most japanese descendants outside of japan, Im half japanese myself. A lot of japanese here went back to Japan (and yes, they knew how to speak japanese) only to be met with xenophobia. Im talking full blooded japanese people, only reason they were rejected was because they were born in Brazil. You somehow seem to know more than me in the subject, I sure hope its from first hand experience if you are claiming those things.