"Korea's Income Level Ranks 21st Globally in 2075... Japan Falls to 45th"

South Korea's global income level ranking is projected to rise slightly from 25th last year to 21st in 2075, while Japan is expected to fall from 29th last year to 45th in 2075.

The Nihon Keizai Shimbun (Nikkei) reported this on the 27th, citing research results from the Japan Center for Economic Research (JCER).

Tokyo, Japan. AP Yonhap News

In its mid-term report on long-term economic forecasts, which is published approximately every five years, JCER projected that South Korea's per capita real gross domestic product (GDP) will reach $79,200 (about 116.07 million KRW) in 2075.

On the other hand, Japan's per capita real GDP in 2075 was estimated at $45,800. If this trend continues, Japan's ranking will drop from 29th last year to 45th in 2075, which is lower than Kazakhstan (36th) and Russia (42nd).

JCER forecasted that Japan's real GDP ranking will fall from 4th last year ($3.5 trillion) to 11th in 2075 ($4.4 trillion), and that Japan's average economic growth rate from 2071 to 2075 will be only 0.3%. The population of Japan, currently around 120 million, is estimated to decrease to 97 million by 2075.

The research institute projected that the top GDP countries in 2075 will be the United States in first place and China in second. Following them, the rankings from 3rd to 10th will be India, Germany, Indonesia, the United Kingdom, Mexico, Brazil, Canada, and France. It predicted that emerging Asian countries such as India and Indonesia will gain greater prominence.

Nikkei reported that Japan will retreat to a mid-tier global country by 2075, and JCER raised the need for reforms in the utilization of digital technologies such as artificial intelligence (AI) and employment practices. In particular, while the United States and China are expected to improve productivity mainly in information services and finance and insurance sectors through AI, Japan's industrial base in these areas is weak, so the productivity gains from AI are predicted to be minimal.

The research institute analyzed 83 countries and regions worldwide, including Hong Kong and Taiwan, in this report. The final report is scheduled to be released around summer.