Tokyo. Japan’s economy unexpectedly went into recession. According to the preliminary data published by the office of the Council of Ministers there, the economy shrank by 0.4 percent in the last quarter of 2023 compared to the same period of the previous year. In the previous quarter, the economy also shrank by an annualized 3.3 percent.
In the December quarter, economists had expected the economy to grow by more than 1 percent. Since this data is preliminary, there is still hope for revision. Economic growth rate going into negative territory for 2 consecutive quarters is called economic recession in the language of economics. In October, the multilateral lender International Monetary Fund predicted that Germany would overtake Japan to become the world’s third largest economy.
In 2023, Japan’s economy is around 42 trillion dollars. Germany is estimated to be around 44 billion. The fund will change its ranking after both countries publish the final figures of economic growth. The Japanese yen has fallen sharply against the US dollar. Therefore, Japan’s rank in the list of economies may fall, the deputy head of the fund, Geeta Gopinathan, said at a press conference held in Tokyo this month.