Germany will once again cede the position of the third economic power to Japan

– International news – Tasnim News Agency According to the German newspaper “Wirthschaftswoche”, based on the forecasts of the Organization for Economic Co-operation and Development OECD, Germany should have its new title as the third largest economy in the world this year. Robert Grundke, a German expert at the Organization for Economic Co-operation and Development (OECD), told Reuters news agency on Monday that Japan would likely overtake Germany. The reason for this is the changes in currency rates. The expert said: “The normalization of monetary policy will lead to an increase in interest rates this year, as well as a strengthening of the Japanese yen.

Last year, Japan regained its traditional position as the world’s third largest economy after the United States. And China lost out, although Germany’s gross domestic product (GDP) fell by 0.3% while Japan’s economy grew by 1.9%, but this position was transferred to Germany. , because of the low interest rate policy. “The sharp difference in interest rates had led to the outflow of large capital from Japan and the sharp decline in the value of the country’s currency by about 50%, which has greatly reduced the dollar value of the GDP,” explained Grandke. According to Tokyo’s announcement, this figure reaches about 4.21 trillion dollars and in Germany it is about 4.5 trillion dollars.

However, the growth trend in Japan is weaker than in Germany. “In the next few years, this will lead to Germany being ahead of Japan,” the OECD expert predicted. Japan’s potential growth suffers even more than Germany’s from a sharp aging population and declining economic dynamism. The latter is related to lack of investment, slow digitization, resistance to structural change and clinging to old industries. According to Grundke, however, Germany is likely to take third place in about ten years. It will lose again to India “which will achieve much higher potential growth rates due to demographic development with a growing active population as well as high investment rates and strong productivity growth.” >

end of message/