Japanese media are sounding the alarm: could Japan slip behind India in the global GDP rankings this year? Kyodo News reported on Thursday that a trio of challenges 1 a weak yen, sluggish tourism, and diplomatic tensions with the Chinese mainland 1 might push Japan down the pecking order. 😲
In the July 6September quarter of 2025, Japan's economy contracted, ending six straight quarters of growth. Exports took a hit amid higher US tariffs, and the tourism sector hasnt bounced back as strongly as hoped after the pandemic. 😕
Adding to the worry, concerns over Japan's fiscal health have grown after Prime Minister Sanae Takaichi unveiled plans for aggressive spending. That move has put additional pressure on the yen, which has been trading near two-decade lows. 📉💸
Meanwhile, India continues its economic rise with robust growth rates and strong domestic demand. If the trend continues, Tokyo could find itself nudged into fourth place behind the United States, China, and India by the end of this year. 🌏
For young professionals, investors, and travelers watching Asia's markets, this story is one to watch. Will Japan's economy bounce back in the coming months? Keep an eye on yen movements, tourism stats, and diplomatic signals from the Chinese mainland 1 they could be the indicators that decide who sits atop the GDP leaderboard. 👀✨
Reference(s):
Japanese media warn of a possible slide in Japan's GDP ranking
cgtn.com
