- Due to the impact of a large senior population and a weak yen

- America, China and Germany in the first three places: India in the fifth place with a GDP of 4.1 lakh crore dollars

AHMEDABAD: Economists predict that Japan, once the world's largest Economy, will move up to fourth place when the figures are released on Thursday. Due to the proportion of old people than young people in the population and the local currency yen which has been falling continuously for the last two years, the size of the economy is seen to be 4.3 trillion dollars. The third place will be Germany with a GDP of 4.7 lakh crore dollars.

However, by 2030, global financial institutions, credit rating agencies and the central government have predicted that India will move from the fifth place to the third place as the fastest growing large economy. According to International Monetary Fund (IMF) figures, America is currently the world's largest economy with 27.9 trillion dollars, while China comes second with 18.5 trillion dollars. The size of Indian economy comes to 4.1 trillion dollars. It is predicted that the size of the Indian economy will reach 7.3 trillion dollars by 2030.

According to IMF statistics, Japan's economy was 6.3 trillion dollars in 2012, which is now declining. Local currency yen weakened from 80 to 140 against the US dollar, the negative interest rate of the government and the central bank (i.e. it costs depositors to deposit money in the bank) continues to weaken the yen. The weakness of the yen is driving an export-led economy. Japan has a declining population, a low birth rate, and the world's largest elderly population, with a third of the country's population over the age of 65, so domestic purchases and people's purchasing power are very low, and the economy has been growing at around 0.2 to 1 percent for the past decade. is growing and due to this the size of the economy has decreased.

Japan was once on the verge of becoming the world's largest economy. However, this recent economic downturn will raise new questions on the country's economic momentum. In 2010, China's economy overtook Japan's economy. However, in this phase of economic weakness, there is no concern among the government, policy makers and the general public about Japan's economy lagging behind, which was seen in 2010. One important reason for this is that everyone knows that this situation is being created due to currency weakness.

However, the bullish trend in Japan's stock market continues and the Bank of Japan is poised to raise interest rates for the first time since 2007. After the February 15 data, the Bank of Japan can take decisive steps in this direction. According to Japanese economist Hido Kumano, the main reason for the decline in Japan's GDP is the weakness of the currency yen. 'Cheap Japan is making the Japanese economy smaller.'

Top five economies of the world