Japan is expected to fall to sixth place in global nominal gross domestic product (GDP) rankings by 2027, as India and the United Kingdom surpass it, according to the latest International Monetary Fund (IMF) World Economic Outlook report. The primary driver behind this decline is the depreciation of the yen, though slower economic growth also plays a role.
In 2025, Japan's nominal GDP was ranked fourth worldwide, trailing only the United States, China, and Germany. The IMF projects Japan's nominal GDP to reach 4,341.9 billion dollars in 2026 and 4,467.6 billion dollars in 2027. Meanwhile, India's nominal GDP is forecasted to hit 4,521.1 billion dollars in 2027, positioning it as the world's fourth-largest economy.
The report highlights the significant impact of currency fluctuations on economic rankings, with the yen's depreciation contributing to Japan's projected drop in the global GDP hierarchy.