Japan may give way to Germany as the world's third-largest economy after the US and China. This should happen already this year. Bloomberg writes about it on the basis of forecasts from the International Monetary Fund.

In figures, the situation is as follows: according to the IMF in 2023, Japan's GDP in dollar terms in 2023 will be $4.23 trillion, and Germany—$4.43 trillion. As for the average gross domestic product per capita, in Germany it should be $52.824, and in Japan it should be $33.950. Apparently, Germany will keep its leading position in the next few years.

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What is this forecast based on? The IMF takes into account, among other things, the weakening of the yen—against the euro, the currency has fallen to its lowest level since 2008, and against the dollar, the yen has not been so low for the past 33 years.

The key factor causing the weakening of the Japanese currency lies in fundamental differences in the monetary policies of central banks. While Germany, as well as Europe in general, has fought inflation by raising interest rates, the Bank of Japan has kept rates negative.

Other factors contributing to Germany's economic success include growing exports, low unemployment, high consumer spending, and a stable political environment.