Japan lost title of world's 2nd largest economy after 42 yrs

Rapid growth and industrial expansion made Japan the world second largest economy in 1968 after the US. Today in mid-2010, Japan lost that title.

[b]2005 - China overtook Italy as the world’s 6th largest economy

2006 - China surpassed France and UK to be the world’s 4th largest economy

2007 - China pushed Germany aside to be the world’s 3rd largest economy

2010 - China unseated Japan to be the world’s 2nd largest economy[/b]

http://i35.tinypic.com/av4nrp.jpg
China is currently undergoing the largest economic & industrial expansion in history of humankind. In the last 16,000 years of history, only 2000 yrs China isn’t the world largest economy.

TOKYO (AP) – Japan lost its place as the world’s No. 2 economy to China in the second quarter as receding global growth sapped momentum and stunted a shaky recovery.

Gross domestic product grew at an annualized rate of just 0.4 percent, the government said Monday, far below the annualized 4.4 percent expansion in the first quarter and adding to evidence the global recovery is facing strong headwinds.

The figures underscore China’s emergence as an economic power that is changing everything from the global balance of military and financial power to how cars are designed. It is already the world’s biggest exporter, auto buyer, internet users, mobile phone users and steel producer, and its global influence is expanding.

China has been a major force behind the world’s emergence from deep recession, delivering much-needed juice to the U.S., Japan and Europe. Tokyo’s latest numbers, however, suggest that Chinese demand alone may not be enough for Japan or other economic giants.

“Japan is the canary in the goldmine because it depends very much on demand in Asia and China, and this demand is cooling quite a bit,” said Martin Schulz, senior economist at Fujitsu Research Institute in Tokyo. “This is a warning sign for all major economies that just focusing on overseas demand won’t be sufficient.”

China has surpassed Japan in quarterly GDP figures before and Japan caught up, but this time it’s unlikely to relinquish the lead and the loss may be permanent.

China’s economy will almost certainly be bigger than Japan’s at the end of 2010 because of the huge difference in each country’s growth rates. China is growing at about 10 percent a year, while Japan’s economy is forecast to grow between 2 to 3 percent this year. The gap between the size of the two economies at the end of last year was already narrow.

Japan’s nominal GDP, which isn’t adjusted for price and seasonal variations, was worth $1.286 trillion in the April-to-June quarter compared with $1.335 trillion for China. The figures are converted into dollars based on an average exchange rate for the quarter. US quarterly nominal GDP stood at $3.564 trillion.

Japan has held the No. 2 spot after the U.S. since 1968, when it overtook West Germany. From the ashes of World War II, the country rose to become a global manufacturing and financial powerhouse. But its so-called “economic miracle” turned into a massive real estate bubble in the 1980s before imploding in 1991.

What followed was a decade of stagnant growth and economic malaise from which the country never really recovered. Prime Minister Naoto Kan now faces a long list of daunting problems: a rapidly aging and shrinking population, persistently weak domestic demand, deflation, a strong yen and slowing growth in key export markets.

In contrast, China’s growth has been spectacular, its voracious appetite fueling demand for resources, machinery and products from the developing world as well as rich economies like Japan and Australia. China is Japan’s top trading partner. China has also replaced the US as the top trading partner for distant country as far as Brazil.

China’s rise has produced glaring contradictions. The wealth gap between an elite who profited most from three decades of reform and its poor majority is so extreme that China has dozens of billionaires while average income for the rest of its 1.3 billion people is among the world’s lowest.

Japan’s people still are among the world’s richest, with a per capita income of $37,800 last year, compared with China’s $3,600. So are Americans at $42,240, their economy still by far the biggest.

Japan’s people appear resigned to the power shift. A national poll conducted earlier this year by the Asahi, one of Japan’s biggest newspapers, showed a roughly equal split between those that believed Japan’s fall to No. 3 posed a major problem and those who did not. More than half of the 2,347 respondents said Japan does not need to be a global superpower.

The country’s annualized growth in the second quarter was also sharply below expectations of 2.3 percent in a Kyodo news agency survey of analysts. On a quarterly basis, Japan’s GDP – or the total value of the nation’s goods and services – grew 0.1 percent from the January-March period, the Cabinet Office said.

Consumer spending, which accounts for about 60 percent of GDP, was flat from the previous quarter, the figures showed. Capital spending by companies rose 0.5 percent, while public investment fell 3.4 percent.

The outlook for the third quarter is uncertain. Private consumption appears to be solid so far, helped in part by unusually hot weather, said Masamichi Adachi, senior economist at JP Morgan Securities Japan. But the slowing global economy is weakening exports and production.

A stronger yen, which hit a 15-year high against the dollar last week, also poses a major risk for the country’s export-driven economy. Yen appreciation reduces the value of repatriated profits for companies like Toyota Motor Corp. and Sony Corp. and makes their products more expensive abroad.

The currency worries led Finance Minister Yoshihiko Noda to say last week that he is closely monitoring foreign exchange rates. Bank of Japan Gov. Masaaki Shirakawa released a similar statement to try to calm markets.

What do you expect when pretty much everything nowadays is “made in china”?

by 2011, china might be the top 1 buyer of hydro electricity sarawak. thank you to score.

actually we buy the technology from china, yes, there are france n argentina contractor in bakun, but they merely work on electrical n mechanical part of bakun, especially those genset,
even the coal plant also we get the tech from china,

yahoo put it as headlines and called it a new superpower, you think?

So basically now it is, countries with trillion-dollar economy:

  1. USA - $14.256 trillion
  2. China - $5.365 trillion
  3. Japan - $5.273 trillion
  4. Germany - $3.352 trillion
  5. France - $2.676 trillion
  6. UK - $2.183 trillion
  7. Italy - $2.118 trillion
  8. Brazil - $1.574 trillion
  9. Spain - $1.464 trillion
  10. Canada - $1.336 trillion
  11. Russia - $1.229 trillion
  12. India - $1.235 trillion
  13. Australia - $1.193 trillion
  14. Mexico - $1.085 trillion

Close-up

14. South Korea - $991.147 billion

Question to ponder:
Middle East exports 21.4 million bbl of oil everyday, that translate into $1.5 billion everyday - only need less than 2 yrs to accumulate $1 trillion. Why aren’t any of them in the list? Oil filled Arabian peninsular, Egypt controls one of the most important shipping line in the world. It connects Africa, Europe and Asia. What happened?

Well, the most important thing here is the income per capita and standard of living which china is not even close to top 30.

the overtaking is symbolic in that it is the ascension of a new economic power. if india in a few yrs time rise to surpass all other european nations, it’d similarly be considered as one. with such, they usually disregard income capita and standard of living. one example was when the US surpassed UK as the no.1 economy in early 1900s, while its income capita and people were considered much much poorer than that of UK at that time, it established the US as a new world power.

hitler acknowledged the might of american industries and economy, though he pretty much looked down on the standard of living and GDP capita there, which prior to ww2 he claimed america can only be a true power (i.e. at par with europe) around 1960s.

What is the use of becoming the 2nd largest economy while 100 millions of its people still live less than USD0.50 per day? Is this a quality growth? or just for the name sake?

As for the question on the Arabs and middle east countries, I think it has something to do with their countries GDPs to get them to qualify for the ranks… but then again, my economic sucks… hopefully someone can give a better explanation.

have japan recorded any positive growth in the last 10 years?

Made in USA , Assembled in China … =.=

[quote=“LadiesMan217”]What is the use of becoming the 2nd largest economy while 100 millions of its people still live less than USD0.50 per day? Is this a quality growth? or just for the name sake?

As for the question on the Arabs and middle east countries, I think it has something to do with their countries GDPs to get them to qualify for the ranks… but then again, my economic sucks… hopefully someone can give a better explanation.[/quote]

For countries like China & India, the only solution is growth, not much choice. Only growth allows them to lift millions from poverty. Also I believe it is basic economy? That a country must maintain a class of ‘poor’ to lower cost of production, and to be competitive. Beside, they aren’t very worse off, in fact, they are coming near with your country, think back your country 10 yrs ago, that’s China now.

Per capita GDP - 2000

China- $956.0
Malaysia - $4029.9
India - $447.1
Indonesia - $779.5
USA - $34279.7

Per capita GDP - 2009

China - $4000
Malaysia - $6896
India - $1031
Indonesia - $2329
USA - $46381

so, the COPY & PASTE INDUSTRY IS LEADING THE WORLD. Great.

I wonder how Chinese R&D is supposed to be like.

each has its own strength and weakness, china is good in industries, but not so in creation/invention, india & japan are better in that.

give a sample and ask the chinese industries to make something new from it, they’ll struggle. communist ban this and that, you cant expect china to be creative :lol: . but if u give them the plan and ask them to mass-produce it, they can cheaply and easily produce 1 million units the next morning.

when China will surpass USA? kinda curious of that LOL :smiley:

analysts estimate at 2030, conservative calculation put it 2050. though you need to note that china is not a stable democracy but a communist authoritarian state. if revolution breaks out to overthrow the gov’t, it’d fall back.

hahaha true. btw the pic are very funny LOL :smiley:

soon china will become world leader no more usa lolz

Apple says China & USA should forever remain as friends, the silliest thing the 2 would do is to go to war with each other.

Apple New York, USA, right in America’s largest city

Apple Shahghai, China, right in China’s largest city