Japan’s slow growth pushes China into No.2 spot

| August 16, 2010 | 0 Comments
Japan’s slow growth pushes China into No.2 spot

Official figures today have revealed Japanese economic growth slowed in the April to June period.

The economy expanded by just 0.1% in the three month period – far less than expected by analysts.

Meanwhile, on an annual basis, the economy grew by 0.4% in the quarter, down from a revised 4.4% in the previous three months and again missing forecasts of 2.3%.

The figures mean Japan could lose its status as the world’s second largest economy with China (currently the world’s third largest economy) taking its place.

On a nominal basis, Japan’s second quarter GDP was less than China’s, at $1.28 trillion (£0.82 trillion) compared with $1.336 trillion.

However, China’s commerce ministry and the National Bureau of Statistics both declined to comment.

China’s economy has been expanding rapidly. It grew by 11.9% in the first quarter and 10.3% in the March to June period, according to the National Bureau of Statistics (NBS).

China has already achieved a major milestone this year by overtaking Germany as the world’s biggest exporter. Germany had held the top spot since 2003.

Meanwhile, China could pinch the top economic spot from the US in the next 15 years.

With a rapidly growing population and booming industry, some experts predict China is on track to become the world’s largest economy by 2025 but this is dependent on how fast its exchange rate rises.

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