Tim lawson
China surpasses Japan to become the world’s second biggest economy
August 23rd 2010 11:58
China has finally outpaced Japan to take the number No. 2 spot on the list of world economies. The economic milestone was disclosed on Friday by the country’s chief currency regulator Yi Gang, who serves as Director of the State Administration of Foreign Exchange (SAFE).
“China, in fact, is now already the world’s second largest economy,” Mr Gang said in an interview with China Reform magazine posted on the SAFE website.
China’s nominal gross domestic product (GDP) for the second quarter reached a total of US$1.337 trillion, with Japan trailing on US$1.288 trillion, the Japanese Cabinet Office said last week.
It appears the switch from Communist economic policies to the introduction of free- market reforms in 1978 has set China on a steady path of economic growth. The last thirty years has seen a transformation that is steadily increasing the standard of living for hundreds of millions of Chinese.
Depending on the speed with which its exchange rate rises, China is on course to overtake the US and move into the No. 1 position sometime around 2027, according to projections by the World Bank, global investment banking and securities firm Goldman Sachs, and others. The US currently holds the No. 1 spot with a GDP of just over US$14 trillion.
This is not the first time that China has overtaken Japan in quarterly GDP figures, however, its passing of Japan in the second quarter is quite possibly the point at which this lead will become consistent and very probably unpassable for Japan.
China’s economic flourishing over the last three decades is undoubtable, but its promotion to the world’s second largest economy is partly due to the period of stagnation Japan has seen over the last ten years. Tokyo said Japan’s economy grew at an annualized rate of 0.4 percent in the second quarter – substantially less than was predicted.
Australia’s economy was ranked the 13th largest national economy by nominal GDP according to lists compiled by the International Monetary Fund and the World Bank. According to the Economy Watch website, Australia has maintained 18 years of continuous growth since 1992- even maintaining a slight growth rate of around 0.732% throughout the global financial crisis in 2008. Eswar Prasad, former head of the China division at the International Monetary Fund, stated: “The resilience of China’s growth during the crisis enabled a number of other countries, particularly commodity-exporting economies, to ride on its coattails.”
Economy Watch predicted growth will continue for at least the next five years, peaking at 3.4% in 2012. For Australia, our commitments to strengthening trade relations with China can only be beneficial as the economic powerhouse continues its period of rapid growth.
“China, in fact, is now already the world’s second largest economy,” Mr Gang said in an interview with China Reform magazine posted on the SAFE website.
China’s nominal gross domestic product (GDP) for the second quarter reached a total of US$1.337 trillion, with Japan trailing on US$1.288 trillion, the Japanese Cabinet Office said last week.
It appears the switch from Communist economic policies to the introduction of free- market reforms in 1978 has set China on a steady path of economic growth. The last thirty years has seen a transformation that is steadily increasing the standard of living for hundreds of millions of Chinese.
Depending on the speed with which its exchange rate rises, China is on course to overtake the US and move into the No. 1 position sometime around 2027, according to projections by the World Bank, global investment banking and securities firm Goldman Sachs, and others. The US currently holds the No. 1 spot with a GDP of just over US$14 trillion.
This is not the first time that China has overtaken Japan in quarterly GDP figures, however, its passing of Japan in the second quarter is quite possibly the point at which this lead will become consistent and very probably unpassable for Japan.
China’s economic flourishing over the last three decades is undoubtable, but its promotion to the world’s second largest economy is partly due to the period of stagnation Japan has seen over the last ten years. Tokyo said Japan’s economy grew at an annualized rate of 0.4 percent in the second quarter – substantially less than was predicted.
Australia’s economy was ranked the 13th largest national economy by nominal GDP according to lists compiled by the International Monetary Fund and the World Bank. According to the Economy Watch website, Australia has maintained 18 years of continuous growth since 1992- even maintaining a slight growth rate of around 0.732% throughout the global financial crisis in 2008. Eswar Prasad, former head of the China division at the International Monetary Fund, stated: “The resilience of China’s growth during the crisis enabled a number of other countries, particularly commodity-exporting economies, to ride on its coattails.”
Economy Watch predicted growth will continue for at least the next five years, peaking at 3.4% in 2012. For Australia, our commitments to strengthening trade relations with China can only be beneficial as the economic powerhouse continues its period of rapid growth.
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