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Germany Remains World’s Third-Largest Economy, Overtaking Japan

February 23, 2026 by
Germany Remains World’s Third-Largest Economy, Overtaking Japan
EURO AGENT

Despite a persistent crisis and minimal economic growth, Germany maintained its position as the world's third-largest economy in 2025, trailing only the United States and China. This data was released today by the German Economic Institute (IW).

The Global Top Three

According to calculations by the Cologne-based institute, the total value of all goods and services produced in Germany (GDP) amounted to approximately $5,100 billion ($5.1 trillion).

The global rankings for 2025 stand as follows:

  • 1. United States: Leading with a GDP of $30,779 billion.

  • 2. China: Following in second place with $19,533 billion.

  • 3. Germany: Holding the third spot with $5,100 billion.

Shared Challenges with Japan

Germany managed to secure its third-place ranking ahead of Japan, which is currently grappling with nearly identical structural hurdles. The IW report highlights that both nations are struggling with:

  • Global Protectionism: Rising trade barriers affecting export-oriented economies.

  • Fierce Competition: Especially the growing industrial might of China.

  • Demographic Shifts: An aging population that is shrinking the available workforce.

While Germany's "bronze medal" in the global economy is a sign of resilience, the institute warns that the narrow lead over Japan is more a reflection of shared struggles than a significant domesticSo

Source: danas.rs

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