Due to the recession, Japan fell out of the top three largest economies in the world

The slowdown in Japan's economy under the influence of global crises, population ageing, and natural disasters has led to a recession. The country's nominal GDP in the last quarter of 2023 decreased by 0.4%, according to the Japanese government, to 591 trillion yen ($4.2 trillion).

Source. This was reported by CNN.

Japan's economy is shrinking under the influence of a general slowdown in the global economy, which, in turn, is affected by inflation and geopolitical tensions.

Japan has been particularly affected by rising commodity prices – the country imports 94% of its fuel – as well as a decline in domestic demand and a weaker yen, which has led to higher housing costs for the population.

"Private consumption has weakened markedly, and the situation is unlikely to change much in the near future," Neil Newman, an analyst at Tokyo-based Japanmacro, told CNN.

According to his estimates, in January, GDP may further deteriorate due to the earthquake in the Sea of Japan, as people usually cut back on consumption in the face of natural disasters.

Japan's economy is also affected by a decline in labour productivity, an ageing population and a related shortage of staff. Attracting specialists from other countries could help fill the shortage, but even though there is a need for them, Japan remains quite closed to foreigners wishing to work there.

At the same time, Germany's nominal GDP in dollars is $4.4 trillion, now ranking third after the United States and China.

At the end of 2023, however, the German economy also shrank (by 0.3% year-on-year), but the country managed to avoid recession.

Background. Meanwhile, it has become known that Japan will allocate more than $100 million for Ukraine's post-war recovery.