India expected to overtake Germany as world's third-largest economy

"With a gross domestic product (GDP) totalling around $5.1 trillion in 2025, Germany maintains its third place in the list of the world's largest economies, according to a recent study by the German Economic Institute (IW). The US leads the ranking with a GDP total of $30.8 trillion reported in 2025, followed by China with $19.5 trillion."

"Both Germany and Japan are falling behind the two largest economies, which have been growing much more dynamically for some time now. The IW referenced the US and China's leadership in high-tech and artificial intelligence, as well as their large domestic markets as reasons for their growth."

"Experts say that both economies are facing similar challenges: which include increasing tariffs and regulations, growing competition from China and an ageing population. Germany has been easing visa and residency rules to try and attract more skilled workers in an effort to offset workers aging out of the workforce."

Germany maintains its position as the world's third largest economy with a GDP of $5.1 trillion in 2025, behind the US ($30.8 trillion) and China ($19.5 trillion). Japan ranks fourth with $4.4 trillion, having fallen behind Germany in 2024. Both Germany and Japan face similar challenges including increasing tariffs and regulations, growing competition from China, and aging populations. The US and China lead in growth due to their dominance in high-tech and artificial intelligence sectors, plus their large domestic markets. Germany is expected to retain third place in 2026 due to its strong industrial base, well-trained workforce, and research-intensive companies. However, India is projected to surpass Germany by the end of the decade.

Read at The Local Germany