Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Palestinian Ministry of Health: Two were martyred in Israeli shelling that targeted a besieged house in the town of Qabatiya in Jenin
At least 68 dead in migrant shipwreck off Yemen: IOM
Trump: We want to feed the people in Gaza, we do not want them to starve.
US President Donald Trump: We will impose sanctions on Russia if it does not end the war on Ukraine.
Israeli media: Polls show that 52% oppose Prime Minister Benjamin Netanyahu while only 29% support him.
Israeli media: 32% of Americans still support "Israel's" war on Hamas, while 60% oppose it.
Israeli media: Core US support for "Israel" hits its lowest, while support for Palestine reaches its highest levels.
Al Mayadeen's correspondent reports martyrs, injuries in Israeli bombardment of home in Heker al-Jame area in Deir al-Balah, central Gaza.
Al-Quds Governorate: Today, the spatial division of Al-Aqsa Mosque began in a public and dangerous manner, and we warn of a religious war in the region
The Ministry of Health in Gaza: This brings the total number of victims of famine and malnutrition to 175, including 93 children

Japan falls behind troubled Germany on world's biggest economies list

  • By Al Mayadeen English
  • Source: News websites
  • 15 Feb 2024 10:46
  • 1 Shares
3 Min Read

Since the 1990s, Japan has swung between periods of sluggish inflation and deflation and continues to keep interest rates at ultra-low levels as it tries to kickstart its economy.

  • x
  • People walk in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Friday, Jan. 26, 2024, in Tokyo (AP)
    People walk in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Friday, January 26, 2024, in Tokyo. (AP)

Data released on Thursday shows that Japan has officially slipped to fourth place on the list of the world's biggest economies as it battles an economic recession brought on by the devaluation of its currency and its elderly demography. 

Despite its economy nominally growing by 1.9% in 2023, Japan fell behind Germany, which sustained a $4.5 trillion gross domestic product (GDP), while Japan's rested at $4.2 trillion. 

This lag is attributed to the Yen's weakness facing its dollar value. For the past two years, the Yen has grown weaker, minimizing profits on exports. Over the 2022-2023 interval, the Yen's value dropped by a fifth versus the dollar and totaled a 7% devaluation last year. 

Since the 1990s, Japan has swung between periods of sluggish inflation and deflation and continues to keep interest rates at ultra-low levels as it tries to kickstart its economy.

Labor shortages create deficits

While Germany and Japan both face the predicament of an older population that does not boost economic productivity, heavily rely on exports, and face the scarcity of natural resources, Germany's economy has also been significantly hit by the rise in energy prices due to the Russia-Ukraine war. 

Related News

Klyuchevskoy volcano erupts hours after 8.8 quake in Kamchatka

Powerful 8.8-magnitude earthquake strikes off Russia’s Kamchatka

However, Japan's lack of labor productivity has maximized its economic loss, surpassing Germany. Despite having a cheap automobile market that brings in high profits, Japan was not able to balance its profits with the sum of its losses. 

Japan has not been able to address its demographic issue by encouraging higher birth rates, which has taken its toll on the economic labor aspect, creating large shortages that could not be filled by attracting a foreign workforce. 

In 2023, Japan unveiled an economic package worth about $16.8 billion to cushion the highest inflation seen in decades, the Kyodo news agency reported, quoting Natsuo Yamaguchi, the leader of the ruling party's coalition partner Komeito.

The news agency said that the funds would be used for low-income family support, including payments of 50,000 yen for each child in such homes, which was meant to promote an increase in birth, as well as for subsidies to cover the cost of liquefied petroleum gas.

Internal concern 

Japan's confidence in its economic abilities and its already generally unpopular prime minister, Fumio Kishida, is seeing a tough blow, following its drop behind an economically weakened Germany.

Moreover, India is expected to jump past Japan and Germany with the help of its young, productive labor force, according to the International Monetary Fund. 

The Nikkei business newspaper recently said that Japan's demographic predicament is the main reason why the country has not been able to economically grow. 

“This situation should be taken as a wake-up call to accelerate neglected economic reforms,” Nikkei said.

Read more: Germany's economy to worsen in 2024

  • Japan
  • economic crisis
  • economy
  • Germany
  • Economic recession

Most Read

A rescued crew member from the ETERNITY C vessel in a video released by the Yemeni Armed Forces on July 28, 2025 (Yemeni Military Media)

Yemen Navy reveals fate of targeted Eternity C ship crew

  • Politics
  • 28 Jul 2025
An Israeli tank explodes following an ambush by al-Qassam Brigades in Gaza, Occupied Palestine, undated (Al-Qassam Military Media)

Al-Qassam strikes Israeli vehicles in Gaza, inflicts casualties

  • Politics
  • 30 Jul 2025
UAE lodges complaint against Israeli ambassador over 'misbehavior'

UAE lodges complaint against Israeli ambassador over 'misbehavior'

  • Politics
  • 1 Aug 2025
Protesters chant anti-Israeli slogans as they carry a banner that reads:" Freedom for Palestine, Alliance stop the war," during a demonstration in support of Palestinians in Gaza, outside the Israeli embassy, in Athens, Monday, June 9, 2025 (AP)

Athens mayor slams Israeli ambassador over Gaza war, graffiti claim

  • Politics
  • 3 Aug 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
A member of the al-Qassam Brigades, the armed wing of Hamas, takes part in a parade as he celebrates a ceasefire agreement between Hamas and the Israeli regime in Deir al-Balah, Gaza Strip, Sunday, January 19, 2025 (AP)
Politics

Al-Qassam: We’ll allow aid to Israeli captives if Gaza siege ends

Freed Lebanese freedom fighter Georges Abdallah during an interview on Al Mayadeen, which aired on Sunday, August 3, 2025 (Al Mayadeen screengrab)
Politics

Exclusive: Resistance key to building state, Georges Abdallah says

United Nations Secretary General Antonio Guterres gives a statement about the situation in Gaza at UN headquarters, Friday, June 27, 2025 (AP)
Politics

UN warns Gaza faces water crisis, looming famine under Israeli siege

Israeli soldiers drive their armored personnel carrier along the Gaza Strip, in southern occupied Palestine, Wednesday, July 30, 2025 (AP)
Politics

Ex-Israeli general says Gaza starvation campaign isolated 'Israel'

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS