As of the end of last year, Japan has changed in its economic status, giving way to Germany and falling into the fourth position on the volume of its nominal gross domestic product (GDP), which amounted to about $ 4.21 trillion. This change, notes by economists, is a result of a rapid fall in the value of Yena relative to the US dollar, which has led to a reduction in economic performance in Japan.
According to the results of October-December last year, Japan unexpectedly found itself in recession due to poor domestic demand. According to the government, in the fourth quarter of 2023 the country's economy decreased by 0.1% compared to the previous quarter, or 0.4% in the annual dimension. Low consumption and investment indicators indicate a reduction in household expenses.
Consumer inflation has a significant impact on changes in the economy, which in Japan in 2023 has reached a record in the last over 40 years of 3.1%. This has led to a decrease in real incomes and a decrease in the attractiveness of investment in production.
The fall of capital expenditures and government investments in the last quarters of 2023 testify to the uncertainty of companies and the government in the economic situation.
Despite these difficulties, the United States remains the largest economy in the world and China in second place. Japan's results will become an important determinant of further trends in the world market this year.
