Japan to fall to 6th in world GDP rankings behind India, Britain: IMF

The International Monetary Fund predicts Japan's nominal gross domestic product (GDP) will fall to sixth place worldwide in 2027, behind India and Britain, according to its latest projections. Japan's current ranking is fourth, surpassed only by the United States, China, and Germany. The IMF released its GDP projections earlier this month, taking into account the yen's ongoing depreciation against the U.S. dollar and the stagnation of Japanese economic growth.

In 2026 and 2027, Japan's nominal GDP is forecasted at $4.3419 trillion and $4.4676 trillion, respectively. These estimates are based on an exchange rate of approximately 158 yen per dollar. Meanwhile, India's GDP is anticipated to surge to $4.5211 trillion in 2027, moving up from the sixth to the fourth position globally. Just a few months prior, in April, the IMF had projected Britain would surpass Japan in 2029, but now it anticipates Britain's GDP at $4.4889 trillion for that year.

Even though Japan's projected real economic growth is 0.7 percent for both 2026 and 2027, India's economy is expected to surge by 7 percent annually. The report highlights that "India remains among the fastest-growing major economies," fueled by "resilient domestic demand and robust services activity." Additionally, Britain's economy is projected to grow by 1.3 percent in 2026 and 1.2 percent in 2027.