Japanese media warn of a possible slide in Japan's GDP ranking

Home

China

World

Politics

Business

Sci-Tech

Health

Opinions

Video

Live

Radio

World Asia-Pacific Middle East Europe Americas Africa

By continuing to browse our site you agree to our use of cookies, revised Privacy Policy and Terms of Use. You can change your cookie settings through your browser.

I agree

Japan's Prime Minister Sanae Takaichi speaks at a press conference, Tokyo, Japan, December 17, 2025. /VCG

Kyodo News on Thursday reported that a weak yen, a sluggish tourism sector and diplomatic tensions with China could see Japan fall behind India in global GDP ranking this year.

Japan's economy contracted in the July–September quarter, ending six straight quarters of growth, as exports weakened amid higher US tariffs.

Concerns over Japan's fiscal health, fueled by Prime Minister Sanae Takaichi's expansionary spending plans, have placed the yen under further selling pressure.

A view of the official residence of Japan's Prime Minister Sanae Takaichi in Tokyo, Japan, December 18, 2025. /VCG

According to the International Monetary Fund's World Economic Outlook released last October, Japan's nominal GDP – already overtaken by Germany two years ago – is expected to be surpassed by India again in 2026.

Shinichiro Kobayashi, chief economist at Mitsubishi UFJ Research and Consulting, said the IMF forecast is largely driven by the weak yen. A lower ranking, he warned, would weaken Japan's influence in global trade, the world economy and international politics.

Open in CGTN APP for better experience

Search Trends