October 26, 2021

China Surpasses Japan As World’s 2nd Largest Economy

Made in China

China Now #2 Economy

After thirty years of remarkable economic expansion, China now outranks Japan as the world’s second-largest economy behind the United States after dismal growth figures were released by the Japanese government.

Tokyo announced that in the 2nd quarter the Japanese economy had a value of approximately $1.28 trillion, just below China’s figure of $1.33 trillion and well below the U.S. gross domestic product of $14 trillion. According to the World Bank, Japan has been the world’s second largest economy for much of the last forty years.

China has been the leading force behind the nascent emergence from the major globalĀ  recession, fueling its increasing demand with exports from the US, Europe and Japan. However, some economists warn that the slowing growth in Japanese exports shows that depending on Chinese demand alone may not be adequate for major economies.

“Japan is the canary in the gold mine because it depends very much on demand in Asia and China, and the demand is cooling quite a bit” stated Martin Schulz, senior economist at Fujitsu Research Institute in Tokyo.

The huge difference between the growth rates of Japan and China virtually guarantee that China’s economy will be bigger than Japan’s at the start of 2011. The Japanese economy is forecast to grow between 2 and 3 percent this year while China’s growth rate is 10 percent per year.

Japan’s economy has seen stagnant growth since the early 1990s showing a decline in both economic and political power.

Enhanced by Zemanta