Japan's nominal GDP last year was 4.2 trillion USD, while Germany's nominal GDP was somewhere between 4.4 and 4.5 trillion USD, depending on the exchange rate between the euro and the US dollar. Japan had been the world's third-largest economy since 2010, after being surpassed by China.

According to economists, the Japanese economy's decline to 4th place is mainly due to the yen falling 18% against the dollar over the past 2 years. Despite rising to 3rd place, the German economy has grown very sluggishly since the pandemic and is facing a recession this year. Robert Halver, market analyst at Germany’s Baader Investment Bank, said the outlook is grim, with Germany’s exports and industrial production declining and foreign competition increasing. 

“It’s important that German goods have become too expensive and face stiff competition, especially from the US. America is trying to attract everything, so Germany must find a way to respond. The debt brake mechanism needs to be loosened drastically. All available funds need to be used to make Germany a place conducive to investors again,” Halver said.

India, with its young population and fast growth rate, is predicted to surpass both Germany and Japan to become the world’s third-largest economy by the end of this decade.