TOKYO –
Japan is expected to fall from fourth to sixth place in the global economic rankings in 2027, overtaken by India and the United Kingdom, according to the latest economic outlook from the International Monetary Fund (IMF), reflecting sluggish domestic growth and the continued weakness of the yen.
The IMF’s latest World Economic Outlook, released on October 12, estimates Japan’s nominal gross domestic product (GDP) at $4.3419 trillion in 2026, rising to $4.4676 trillion in 2027.
Japan currently ranks fourth in the world behind the United States, China and Germany. However, the IMF forecasts that India will move into fourth place in 2027, followed by the United Kingdom in fifth, pushing Japan down to sixth.
The projected decline reflects several factors, including Japan’s relatively weak economic growth compared with India and the United Kingdom, both of which are expected to expand at faster rates.
The prolonged depreciation of the yen is also a major factor. Because international GDP rankings are calculated in U.S. dollars, a weaker yen reduces the dollar value of Japan’s economic output, even when GDP measured in yen increases.
The latest projections represent a significant revision from the IMF’s previous outlook in April, when the organization estimated that the United Kingdom would overtake Japan in nominal GDP in 2029.
The expected crossover has now been brought forward by two years to 2027, highlighting Japan’s growing difficulty in maintaining its position among the world’s largest economies as faster-growing countries expand their economic influence.
Source: TBS
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: newsonjapan.com
