Japan is expected to slide from fourth to sixth place in the global economic rankings by 2027, as India and the United Kingdom are projected to surpass it in terms of nominal gross domestic product (GDP), according to the International Monetary Fund (IMF). The IMF forecasts Japan’s nominal GDP at $4.34 trillion in 2026, increasing slightly to $4.47 trillion in 2027. However, the nation faces economic challenges due to the yen’s depreciation against the US dollar and sluggish growth.
India is poised to ascend from sixth to fourth place globally, with its nominal GDP projected to reach $4.52 trillion by 2027. This growth is supported by strong domestic demand and a robust services sector, with the Indian economy expected to expand by 7% annually on a fiscal-year basis for both 2026 and 2027.
The United Kingdom is also forecasted to overtake Japan, with its GDP estimated to rise to approximately $4.49 trillion in 2027. The UK’s economic growth is projected at 1.3% in 2026 and 1.2% in 2027, according to the IMF.
Japan, which once held the position of the world’s second-largest economy until it was overtaken by China in 2010, continues to grapple with economic headwinds. It fell behind Germany in 2023, thus moving to fourth place in the global rankings.
The IMF’s projections underscore the shifting dynamics among the world’s largest economies and highlight India’s increasing economic influence on the global stage.