The IMF's latest outlook forecasts that Japan's nominal GDP will fall to sixth place in 2027, overtaken by India and the UK. A weaker yen and slower growth are cited as the reasons.
In its latest World Economic Outlook, the International Monetary Fund (IMF) forecast that Japan's nominal gross domestic product (GDP) would be overtaken by India and the UK in 2027, causing Japan's global ranking to fall from fourth place, behind the United States, China and Germany through 2026, to sixth place.
In addition to the impact of a weaker yen and stronger dollar, Japan's slower economic growth compared with other countries was cited as a factor behind the decline in its ranking.
The outlook suggests a decline in Japan's relative economic size, indicating that the global ranking structure in 2027 may differ from the current one.