Japan is about to fall behind Taiwan and South Korea in terms of economic output per person, forecasts show, as the yen's plunge against the dollar accelerates a reversal driven by a productivity gap.

The Japan Center for Economic Research said Wednesday it expects Taiwan to pull ahead this year and South Korea in 2023 -- earlier than last year's forecast of 2028 and 2027, respectively.

Nominal gross domestic product per capita is a measure of the wealth of a population. Japan's level came to $39,583 last year, 13% higher than South Korea's and 22% above Taiwan's, according to data from the International Monetary Fund and the United Nations.

Labor productivity, average hours worked and employment rates are all factors, but foreign exchange rates are the main reason that Taiwan and South Korea are moving ahead. ...continue reading