Japan’s economy drops to fourth largest in world as recession hits

Japan has slipped to the world’s fourth-largest economy as government data showed it fell behind Germany in 2023 (AP Photo/Eugene Hoshiko, File)

Japan’s economy is now the world’s fourth-largest after it contracted in the last quarter of 2023 and fell behind Germany.

The government reported the economy shrank at an annual rate of 0.4% in October to December, according to cabinet office data on real GDP (dross domestic product) released on Thursday, though it grew 1.9% for all of 2023.