Crown of world's third largest economy snatched away from Japan, know at what number India stands
Due to the ongoing recession in Japan since last year, the economy here has been adversely affected. At one time Japan was on the verge of becoming the world's largest economy, but now it has lost the title of world's third largest economy.
Muskan
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In 2010, China's economy lost ground to Japan's. All estimates during these years indicated that Japan's economy was on the verge of overtaking the rest of the world in size; however, the recession that has persisted since last year has severely slowed the nation's economic growth. Japan has now been surpassed by Germany to become the world's third-largest economy. As a result, the way forward for the Indian economy is now even more apparent. The GDP is getting smaller in Japan as a result of the country's growth rate slowing down. Given the circumstances, it is evident that India will take the third spot very soon.
Japan's standing in the world economy is deteriorating daily. It is currently the fourth-largest economy in the world after falling in the rankings. This is supported by recent data on Japan's growth rate. Experts claim that Japan's economy is currently feeling the effects of both the country's ageing population and weak currency. Japan's fourth-quarter annual growth was 1.2%, and its calendar year 2023 numbers were lower than Germany's in terms of dollars. These numbers are new as of today alone. However, the fact that India's economy is expected to surpass both Japan's and Germany's in the coming years is welcome news for that country.
India's youthful strength will propel the country's economy to become the world's third-largest. On the one hand, the working-age population is rapidly declining in countries like Germany and Japan, while the workforce in India is growing. The Organisation for Economic Co-operation and Development (OECD) projects that by 2022, Germany's working-age population will be approximately 63%, while Japan's will be approximately 58%. In contrast, the proportion of people in India who are working age has increased steadily and now stands at roughly 67%.
Both Japan and Germany are growing far more slowly than they did previously when compared to India. It is also evident from IMF data that India has grown at a significantly faster rate than these two nations. Therefore, by the year 2026, we are expected to surpass Germany and become the third-largest economy. At that time, India's GDP is expected to reach close to $5.5 trillion.
