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Germany poised to surpass Japan as the world’s third largest economy.

ByEditor

Feb 13, 2024

Japan’s economy is slipping behind Germany’s due to the weakening of the Japanese yen against the dollar, causing analysts to believe Germany may soon overtake Japan in the ranking. Despite this, Japanese policymakers remain hopeful, as the economy likely picked up by 12% once the greenback factor is removed. There are also rumors that the central bank may raise interest rates for the first time since 2007, potentially turning the decade-long deflation in Japan into healthier prices that can benefit the economy.

Germany’s economy, while still struggling, is ahead of Japan’s due to its industrial sector’s production levels being lower and inflation impacting shoppers. Both countries are struggling with aging and shrinking populations, weighing heavily on various industries. In contrast, India is experiencing rapid economic growth, with a young and growing population. The International Monetary Fund predicts that India will surpass Germany’s economy as soon as 2027.

By Editor

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