India Expected to Overtake Japan as World's 4th Largest Economy in 2027: IMF
The IMF said Japan’s nominal GDP will fall to sixth place in 2027 as India and the U.K. post faster growth.
- On Tuesday, the International Monetary Fund released its biannual World Economic Outlook, forecasting Japan's nominal GDP will slip to sixth place by 2027, trailing both the United Kingdom and India.
- Japan previously held the rank of third-largest economy for a decade before Germany overtook it in 2023, while an aging population and low economic growth complicate the nation's future.
- While Japan currently ranks fourth at $4.34 trillion, projections show India reaching $4.52 trillion and the United Kingdom $4.49 trillion by 2027, with Japan at $4.47 trillion.
- Despite these challenges, Japan's GDP in the second quarter was "better than what IMF staff had expected," as government support helped mitigate the impact of higher energy prices.
- The IMF's "Resilience Under Strain, Urgent Choices" report projects 3.4% global growth for 2027, with Deniz Igan, division chief of the IMF's Research Department, warning of a "growing divide" driven by artificial intelligence investment.
45 Articles
45 Articles
According to an IMF forecast, Japan will fall to sixth place, behind India and Britain.
India's GDP is forecast to exceed that of Japan and the United Kingdom next year, according to forecasts from the International Monetary Fund, a growth which some experts doubt is strong, and which masks high unemployment among young people.
Japan will fall to sixth next year, behind India and also the UK, according to Fund projections
India is expected to rise to fourth place among the world's largest economies by 2027, while Japan is expected to drop to sixth place, according to forecasts from the International Monetary Fund. The change in rankings will be determined, among other factors, by the differences in the growth rates of the two Asian economies.
Japan, on the other hand, is witnessing the effects of an increasingly old population and other factors that contribute to a stagnation of its economy.This year the GDP of the archipelago is expected to grow by just 0.7%.
India set to overtake Japan as fourth-largest economy
India is expected to become the world's fourth-largest economy by 2027, overtaking Japan, according to International Monetary Fund projections that on Thursday laid out the Asian nations' contrasting trajectories. The IMF said Japan would remain the fourth-largest country by nominal gross domestic product this year, but in 2027 India is set to take its place, with a GDP reaching US$4.52 trillion. Japan is slated to slip to sixth place that year,…
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