Germany overtakes Japan as third-biggest economy

1 / 3
The buildings of the banking district are pictured in Frankfurt, Germany, early on Feb. 12, 2024. (AP Photo)
2 / 3
Containers are pictured in the small harbor in Frankfurt, Germany, on Feb. 13, 2024. In the background are the ECB and other buildings of the banking district. (AP Photo)
3 / 3
A sushi chef prepares a plate at the Toyosu Market in Tokyo on Jan. 29, 2024, in Tokyo. Japan has slipped to the world's fourth-largest economy, falling behind Germany. (AP/File)
Short Url
Updated 15 February 2024
Follow

Germany overtakes Japan as third-biggest economy

  • Japan became the world’s second-largest economy behind the US in the late 1960s, booming even further in the 1970s and ‘80s
  • In 2010, Japan was overtaken as No. 2 by fast-rising China, whose economy is now around four times larger
  • In 2026, India is forecast to overtake both Japan and Germany

TOKYO: Once forecast to become the world’s biggest economy, Japan slipped below Germany last year to fourth place, official data showed Thursday, although India is projected to leapfrog both later this decade.

Despite growing 1.9 percent, Japan’s nominal 2023 gross domestic product in dollar terms was $4.2 trillion, government data showed, compared with $4.5 trillion for Germany, according to figures released there last month.
The change in positions primarily reflects the sharp fall in the yen against the dollar, which slumped by almost a fifth in 2022 and 2023 against the US currency, including around seven percent last year.
This was in part because the Bank of Japan has maintained negative interest rates, unlike other major central banks, which have raised borrowing costs to fight soaring inflation.
Both economies rely heavily on exports, though Germany’s manufacturers have been hit particularly hard by soaring energy prices and Russia’s invasion of Ukraine.
Europe’s biggest economy has also been hampered by the European Central Bank raising interest rates in the eurozone as well as uncertainty over its budget and chronic shortages of skilled labor.




IMF forecast in January 2024. (AFP)

In January, German Finance Minister Christian Lindner dismissed accusations that his country was the “sick man” of Europe.
“Germany is a tired man after a short night and the low-growth expectations are partly a wake-up call,” he said.

Japan is also heavily reliant on exports, in particular cars, sales of which have been helped by the weak yen.
But it is suffering more than Germany in terms of worker shortages as its population falls and birth rates remain low.
Thursday’s data showed that its economy shrank 0.1 percent in the last quarter of 2023, missing market expectations of 0.2 percent growth.
Growth for the third quarter was also revised downwards to negative 0.8 percent.
Japan became the world’s second-largest economy behind the United States in the late 1960s, and during the boom years of the 1970s and ‘80s some projected it would become number one.
But the catastrophic bursting of Japan’s asset bubble in the early 1990s led to several “lost decades” of economic stagnation and deflation.

When in 2010 Japan was overtaken as number two by Asian rival China — whose economy is now around four times larger — it prompted major soul-searching.
While more down to the yen’s slide, falling behind Germany will still be a blow to Japan’s self-esteem and add to the pressure on unpopular Prime Minister Fumio Kishida.
Kishida, reeling from a string of scandals, has already reshuffled his cabinet twice and in November announced a stimulus package worth 17 trillion yen ($118.5 billion).
More pain is to come, as India’s economy, with a burgeoning young population, is projected to overtake Japan in 2026 — then Germany in 2027 — according to the International Monetary Fund.
The Nikkei financial daily said in an editorial last week that the German economy faces its own problems.
“Nevertheless, Japan has not made progress in raising its own growth potential. This situation should be taken as a wake-up call to accelerate neglected economic reforms,” the paper said.
 


Philippines rules out use of water cannon in disputed South China Sea

Updated 7 sec ago
Follow

Philippines rules out use of water cannon in disputed South China Sea

  • Philippines and China have clashed several times in disputed, resource-rich waterway
  • Latest skirmish took place late last month, in an incident Manila describes as dangerous

MANILA: President Ferdinand Marcos Jr. said on Monday that Manila will not use offensive equipment in the disputed South China Sea, after China’s coast guard used high-pressure water cannon on Philippine vessels last week.

The Philippines and China have had several confrontations in the resource-rich area, where Beijing has used water cannon against Filipino vessels in incidents Manila has described as harassment and dangerous.

The latest in a string of maritime clashes occurred on April 30 as tensions continued to rise in the vital waterway that Beijing claims almost in its entirety despite a 2016 international arbitration ruling that rejected its assertion.

“What we are doing is defending our sovereign rights and our sovereignty in the West Philippine Sea. And we have no intention of attacking anyone with water cannons or any other such offensive (weapons),” Marcos said Monday.

“We will not follow the Chinese coast guard and the Chinese vessels down that road because it is not the mission of the navy (or) our coast guard to start or to increase tensions … Their mission is precisely the opposite, it’s to lower tensions.”

Philippine vessels have been regularly targeted by Chinese ships in areas of the South China Sea that are internationally recognized as belonging to the Philippines, which Manila calls the West Philippine Sea.

The Philippines’ Ministry of Foreign Affairs last Thursday summoned Zhou Zhiyong, China’s deputy chief of mission, after the incident left a Philippine coast guard vessel and another government boat damaged.

It was the 20th protest Manila has made against Beijing’s conduct in the South China Sea this year alone, while more than 150 diplomatic complaints have been made over the past two years.

Marcos said the Philippines will continue to respond to South China Sea incidents through diplomatic means.

Marcos’s statement comes days after the defense ministers of the Philippines, the US, Japan and Australia met in Hawaii and issued a joint statement on their strong objections to the “dangerous and destabilizing conduct” of China in the South China Sea.


UK considered Rwanda-style asylum deal with Iraq

Updated 25 min 13 sec ago
Follow

UK considered Rwanda-style asylum deal with Iraq

  • Documents seen by Sky News reveal London has struck returns agreement with Baghdad
  • They also suggest a desire to improve relations with Iran to return people to the country

LONDON: The UK considered sending asylum-seekers to Iraq for processing, new documents have shown.

Iraq is considered very dangerous, with the UK government advising against all travel to the country.

But a plan similar to the Rwanda scheme to process migrants in a third-party country was floated at one stage by Whitehall officials, with negotiations said to have achieved “good recent progress.”

The UK has struck a returns agreement with Baghdad for Iraqi citizens, which was achieved without a formal announcement or acknowledgement and a plea for “discretion,” the documents, seen by Sky News, suggest.

The cache of papers casts new light on the UK government’s approach to dealing with asylum-seekers and illegal migration, including a desire to improve relations with the Iranian Embassy in London in order to ease the repatriation of Iranian citizens, and moves to establish return agreements with Eritrea and Ethiopia.


Biden meets Jordan’s King Abdullah as Gaza ceasefire hopes dim

Updated 06 May 2024
Follow

Biden meets Jordan’s King Abdullah as Gaza ceasefire hopes dim

  • Monday’s meeting between two leaders is not a formal bilateral meeting but an informal private meeting
  • US president Biden faces increasing pressure politically to convince Israel to hold off on an invasion

WASHINGTON: President Joe Biden will meet Middle East ally, Jordan’s King Abdullah II, at the White House on Monday with prospects for a Gaza ceasefire appearing slim and Palestinian Islamist group Hamas and Israeli officials blaming each other for the impasse.
On Sunday, Hamas reiterated its demand for an end to the war in exchange for the freeing of hostages, and Israeli Prime Minister Benjamin Netanyahu flatly ruled that out. Hamas also attacked the Kerem Shalom crossing into Gaza that Israel said killed three of its soldiers.
A Jordanian diplomat said Monday’s meeting between Biden and King Abdullah is not a formal bilateral meeting but an informal private meeting. It comes as the Biden administration and Israeli officials remain at odds over Israel’s planned military incursion in Rafah.
Biden last met King Abdullah at the White House in February and the two longtime allies discussed a daunting list of challenges, including a looming Israeli ground offensive in southern Gaza and the threat of a humanitarian calamity among Palestinian civilians. Jordan and other Arab states have been highly critical of Israel’s actions and have been demanding a ceasefire since mid-October as civilian casualties began to skyrocket. The war began after Hamas stunned Israel with a cross-border raid on Oct. 7 in which 1,200 people were killed and 252 hostages taken, according to Israeli tallies.
Biden last spoke to Netanyahu on April 28 and “reiterated his clear position” on a possible invasion of the Gaza border city of Rafah, the White House said. The US president has been vocal in his demand that Israel not undertake a ground offensive in Rafah without a plan to protect Palestinian civilians.
With pro-Palestinian protests erupting across US college campuses, Biden faces increasing pressure politically to convince Israel to hold off on an invasion. Biden addressed the campus unrest over the war in Gaza last week but said the campus protests had not forced him to reconsider his policies in the Middle East.


Russia’s president Putin orders nuclear drills with troops near Ukraine

Updated 06 May 2024
Follow

Russia’s president Putin orders nuclear drills with troops near Ukraine

  • Putin has upped his nuclear rhetoric since the Ukraine conflict began, warning in his address to the nation in February there was a ‘real’ risk of nuclear war

MOSCOW: President Vladimir Putin has ordered the Russian military to hold nuclear weapons drills involving the navy and troops based near Ukraine, the defense ministry said Monday.
Putin has upped his nuclear rhetoric since the Ukraine conflict began, warning in his address to the nation in February there was a “real” risk of nuclear war.
“During the exercise, a set of measures will be taken to practice the preparation and use of non-strategic nuclear weapons,” the defense ministry said.
Non-strategic nuclear weapons, also known as tactical nuclear weapons, are designed for use on the battlefield and can be delivered via missiles.
The ministry said the exercises would take place “in the near future” and were aimed at ensuring Russia’s territorial integrity in the face of “threats by certain Western officials.”
Aircraft and naval forces will take part, as well as troops from the Southern Military District, which borders Ukraine and includes the occupied Ukrainian territories, it said.
Western officials have become increasingly alarmed by the Kremlin’s nuclear rhetoric during the offensive in Ukraine, with Putin frequently invoking Russia’s nuclear doctrine.
Last year Russia ditched its ratification of the Comprehensive Nuclear Test Ban Treaty and pulled out of a key arms reduction agreement with the United States.


No place to pray for Muslim workers in Italian city

Updated 06 May 2024
Follow

No place to pray for Muslim workers in Italian city

  • Urban planning regulations tightly limit the establishment of places of worship, mayor says
  • Islam is not among the 13 religions that have official status under Italian law

MONFALCONE, Italy: It’s Friday prayers in the northeastern Italian city of Monfalcone, and hundreds of men are on their knees in a concrete parking lot, their heads bowed to the ground.
They are just a fraction of the city’s Muslims who since November have been banned from praying inside their two cultural centers by Monfalcone’s far-right mayor.
Instead, they assemble in this privately owned construction site as they await a court decision later this month to settle a zoning issue they say has barred their constitutional right to prayer.
Among them is Rejaul Haq, the property’s owner, who expresses frustration over what he and many other Muslims see as harassment by the city they call home.
“Tell me where I should go? Why do I have to go outside of Monfalcone? I live here, I pay taxes here!” lamented Haq, a naturalized Italian citizen who arrived from Bangladesh in 2006.
“Catholics, Orthodox, Protestants, Jehovah’s, if they all have their church — why can’t we have one?”
Immigrants make up a third of this city of 30,000 inhabitants outside Trieste, most of them Bangladeshi Muslims who began arriving in the late 1990s to build cruise-liners for ship builder Fincantieri, whose Monfalcone shipyard is Italy’s largest.
Their presence is immediately visible, whether the Bangladeshi men on bicycles peddling to and from work or the ethnic grocery stores on street corners.
For Mayor Anna Cisint, the restriction on prayer is about zoning, not discrimination.
Urban planning regulations tightly limit the establishment of places of worship, and as a mayor in a secular state, she says it is not her job to provide them.
“As a mayor, I’m not against anybody, I wouldn’t even waste my time being against anybody, you see, but I’m also here to enforce the law,” Cisint said.
Still, she argues the number of Muslim immigrants, boosted by family reunifications and new births, has become “too many for Monfalcone.”
“There are too many... you have to tell it like it is,” she said.
Her warnings about the “social unsustainability” of Monfalcone’s Muslim population have propelled Cisint to national headlines in recent months.
They have also assured her a spot in upcoming European Parliament elections for Matteo Salvini’s anti-immigrant League party, part of Prime Minister Giorgia Meloni’s coalition government.
The League for decades has obstructed mosque openings in its stronghold of northern Italy. But the problem is nationwide in Catholic-majority Italy.
Islam is not among the 13 religions that have official status under Italian law, which complicates efforts to build places of worship.
There are currently fewer than 10 officially recognized mosques, said Yahya Zanolo of the Italian Islamic Religious Community (COREIS), one of the country’s main Muslim associations.
That means that out of Italy’s estimated more than two million Muslims, most are relegated to thousands of makeshift places of worship that “feed prejudice and fear in the non-Muslim population,” said Zanolo.
Cisint, who has been under police protection since receiving online death threats in December, complains about a resistance to integration by what she called a “very closed” community.
She asks why Arabic and not Italian is taught in the community centers and calls “intolerable” wives walking behind husbands or schoolgirls in veils.
In the run-up to European elections, the League has once again seized on illegal immigration to Italy — where nearly 160,000 migrants arrived by boat last year, mostly from Muslim countries — as a vote-winner.
Salvini has called the June vote “a referendum on the future of Europe,” to decide “whether Europe will still exist or whether it will be a Sino-Islamic colony.”
But Monfalcone’s Muslims don’t fit the stereotypes exploited by the League, armed as they are with work permits or passports.
“It’s not like we came here to see the beautiful city of Monfalcone,” jokes Haq. “It’s because there’s work here.”
Many Muslims said they feel a palpable sense of distrust, if not outright hatred, from some of the long-time residents.
Ahmed Raju, 38, who works at Fincantieri installing panels, has mostly prayed at home since the cultural centers have been off-limits.
Such is the reach of the mayor’s rhetoric that “even I get scared” about Muslims, Raju said.
Of the prejudice the community faces, Raju added: “You feel like you’re in front of a big wall, that you can’t break down.”
“We’re foreigners. We can’t change the situation.”
Outside a classroom where volunteers teach Italian to recently immigrated women, Sharmin Islam, 32, said the animosity is acutely felt by her young son who was born in Italy.
“He comes back from school and asks, ‘Mum, are we Muslims bad?’”
An administrative court in Trieste will rule on May 23 whether to uphold or strike down the mayor’s ban on prayer within the cultural centers.
Haq says Monfalcone’s Muslims have “no Plan B” if they lose, but worries even if they win the scars from the stand-off will remain.
Meanwhile Cisint has been actively promoting her book, “Enough Already: Immigration, Islamization, Submission,” warning Monfalcone’s situation could be duplicated elsewhere.
On a recent public holiday, Bangladeshis filled the city’s main square, from little girls with unicorn balloons to groups of young men enjoying a day off.
Looking on was barman Gennaro Pomatico, 24.
“The locals won’t ever accept them,” said Pomatico.
“But ultimately they don’t bother anyone.”