China Eclipses Japan as World’s Second-largest Economy
BBC, Feb. 14, 2011
Japan’s postwar economic miracle gave way to the “lost decade” of the 1990s. The country still clung to the No. 2 economic slot behind the United States, however, until 2010, when it was supplanted by China, reports the BBC. At the close of last year, Japan’s economy was worth $5.47 trillion. China’s was worth $5.8 trillion. The switch comes as China surges ahead in manufacturing, while Japanese exports and consumer demand have slumped.
Japan’s postwar economic miracle gave way to the “lost decade” of the 1990s. The country still clung to the No. 2 economic slot behind the United States, however, until 2010, when it was supplanted by China, reports the BBC. At the close of last year, Japan’s economy was worth $5.47 trillion. China’s was worth $5.8 trillion. The switch comes as China surges ahead in manufacturing, while Japanese exports and consumer demand have slumped.
Japanese officials say they are not perturbed by the shift. “As an economy, we are not competing for rankings but working to improve citizens’ lives,” said Japan’s economics minister, who added that a burgeoning neighbor was good news for Japan. As consumer spending power increases in China, Japanese firms see an emerging market for cars from Honda and Toyota and Sony electronics. Analysts predict that China will overtake the United States in the next 10 years to become the world’s largest economy.
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