Growing China beats Japan in economy
Mon, 14 Feb 2011 01:55:38 GMT
China has passed Japan to become the world's second largest economy, a shift indicating China's rise and Japan's decline as global growth engines.
The Japanese government announced the flip on Monday in Tokyo, reporting that Japan's economy was worth $5.474 trillion at the end of 2010, about seven percent smaller than the $5.88 trillion for China in the same period, The Wall Street Journal reported.
Japan's economy shrank at a 1.1 percent annual rate for the final three months of the year, a time-span when China's Gross Domestic Product (GDP) surged 9.8 percent from a year earlier.
China's per capita income is still only a tenth of Japan's. The World Bank's estimates show that more than 100 million Chinese citizens about the size of Japan's entire population live on less than $2 per day.
China enjoyed a manufacturing boom in 2010, while Japan was hit by a dip in exports and consumer demand.
China and Japan are considerably smaller than the US economy, as both combined are still worth less than the US's 2010 GDP of $14.66 trillion.
However, analysts believe that China will overtake the United States as the world's largest economy in about a decade.