Wed Nov 22, 2017 | 20:21
China tops Japan economy to stand 2nd
Mon, 14 Feb 2011 07:15:42 GMT
Font size :
The Shanghai Stock Exchange
Official data shows the Chinese economy expanded by almost 10.3 percent in 2010, overtaking Japan's 42-year ranking as the world's second largest economy.

The data released on Monday indicates that the Japanese economy expanded by almost 4 percent in 2010; not enough to keep China back, AFP reported.

A nominal gross domestic product (GDP) of $5.474 trillion in 2010 put Japan behind China's $5.879 trillion, the data showed.

Despite the fact that Japan is crawling out of a severe year-long recession, (which hit the country in 2009,) its recovery remains fragile with deflation, a high public debt, a weak domestic demand and a strong yen as concerns for policymakers.

According to the report, the weak state of the Japanese economy in the last quarter of 2010 was due to deflation, a soft domestic demand and pressure from the industrialized world's biggest debt.

"It is difficult for the deflation-plagued Japanese economy to achieve self-sustained growth," said Naoki Murakami, chief economist at Monex Securities.

Analysts say the new rankings symbolize China's rise and Japan's decline as global growth engines.

Japan's post-war "economic miracle" put it second to the United States for more than four decades. However, stagnation after the Japanese property bubble burst in the 1990s helped put booming China on course to step into the shoes of its neighbor.

According to the International Monetary Fund, Japan remains around 10 times richer on a per-capita basis.

The American economy is the largest in the world. At its current rate of growth, analysts see China overtaking the United States as the world's top economy in about a decade.

RZS/TG/HRF
Comment
Your Name
Your Comment
Enter the code shown
terms of use

x
Popular
  • last 24 hours
  • last week
  • last month
© 2009 Press TV. All rights reserved.