Japan's nominal GDP per capita lowest among G7 countries

26 Dec '23

2 min read

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In 2022, Japan's nominal GDP per capita was $34,064, the lowest among the G7 for the first time since 2008, indicating a decline in its economic standing.
The yen's fall against the dollar led to interventions by Japanese authorities.
Japan ranked 21st among 38 OECD members and contributed 4.2 per cent to global GDP, down from 5.1 per cent in 2021.

In 2022, nominal gross domestic product (GDP) per capita in Japan was at $34,064, which was the lowest among the Group of Seven (G7) advanced economies. The G7 consists of the UK, Canada, Germany, France, Italy, Japan, and the United States plus the European Union.

It was for the first time since 2008 that Japan’s nominal GDP per capita was the lowest among G7, the Japanese government has said. This shows a relative decline in Japan’s economic standing among the advanced economies.

This also points to the impact of weaker Japanese currency against the US dollar. In 2022, the Japanese yen experienced a significant decline against the US dollar, driven by an expanding interest rate disparity between the two countries. This led to multiple interventions by Japanese officials to halt the yen’s sharp fall.

The dollar’s average trading value was notably higher at 131.4 yen in 2022, compared to 109.8 yen in the previous year, as per the Cabinet Office.

Among the 38 members that make up the Organization for Economic Cooperation and Development (OECD), Japan’s nominal GDP per capita ranked 21, again a record-low for Japanese economy which continued to be the third largest in 2022.

In 2022, Japan contributed 4.2 per cent to global GDP, a huge decline from 5.1 per cent share in the previous year.

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