Japan projected to fall to sixth in global GDP by 2027

The International Monetary Fund (IMF) projects that Japan's nominal GDP will drop to sixth place globally by 2027, as it is expected to be overtaken by both India and the United Kingdom.

Economic analysts attribute Japan's declining global ranking to several factors, including a weak yen, a declining birthrate, and an aging population. While Japan held the second-largest economy in 1968, it has seen a steady descent, falling behind China in 2010 and Germany in 2024.

In contrast, India is projected to reach the position of the world's fourth-largest economy by 2027. Meanwhile, the IMF notes that while Asian economies may benefit from the artificial intelligence boom through semiconductor exports, Japan is expected to benefit significantly less from this trend than neighbors like South Korea.