GDP contracting, recessions in Japan and the UK

Among the Group of Seven advanced economies that have entered a recession are Britain and Japan. Japan’s economy shrank in the last quarter of 2023, lagging behind Germany to become the fourth biggest in the world.

Based on Cabinet Office figures on real GDP, the Japanese government claimed that the economy contracted at an annual pace of 0.4% from October to December. China’s economy surpassed Japan’s as the second biggest in 2010, however. Germany’s nominal GDP last year was $4.4 trillion, or $4.5 trillion depending on the currency conversion, whereas Japan’s was $4.2 trillion.

The second half of 2023 saw a recession in the British economy. According to official figures, the GDP shrank by 0.1% between July and September before contracting by 0.3% in the three months leading up to December. The British economy is just 1% larger than it was in late 2019, before to the COVID-19 epidemic.