Japan, once the world's second-largest economy, has now fallen to fourth place behind Germany due to an unexpected recession. With two consecutive quarters of contraction, Japan's GDP declined by 0.4% annually in the fourth quarter, missing forecasts. Conversely, Germany's nominal GDP grew by 6.3% in 2023, surpassing Japan's. Despite the economic setback, Japan's benchmark Nikkei 225 rose 0.65%, suggesting investors anticipate a delay in the Bank of Japan's exit from negative interest rates. This shift underscores significant economic changes on the global stage.