Japan has fallen to the fourth-largest economy globally, trailing behind Germany, as revealed by government data. The decline underscores Japan’s challenges, including a shrinking population, aging demographic, and decreased productivity. The country previously held the second-largest economy position behind the U.S. until 2010 when China’s economy surpassed it. The latest figures, based on nominal GDP, show Japan’s economic size at $4.2 trillion, placing it behind Germany’s $4.4 trillion. Analysts attribute Japan’s diminished competitiveness to various factors, including demographic shifts, changing industries, and the rise of other nations. The data signal a challenging outlook for Japan’s economic role on the global stage.