China surpassed Japan as the worldÃ¢â‚¬â„¢s second-largest economy last quarter, capping the nationÃ¢â‚¬â„¢s three- decade rise from Communist isolation to emerging superpower.
JapanÃ¢â‚¬â„¢s nominal gross domestic product for the second quarter totaled $1.288 trillion, less than ChinaÃ¢â‚¬â„¢s $1.337 trillion, the Japanese Cabinet Office said today. Japan remained bigger in the first half of 2010, the government agency said. JapanÃ¢â‚¬â„¢s annual GDP is $5.07 trillion, while ChinaÃ¢â‚¬â„¢s is more than $4.9 trillion.
China led the world out of last yearÃ¢â‚¬â„¢s global recession with an economy thatÃ¢â‚¬â„¢s more than 90-times bigger than when leader Deng Xiaoping ditched hard-line Communist policies in favor of free-market reforms in 1978. The country of 1.3 billion people will overtake the U.S., where annual GDP is about $14 trillion, as the worldÃ¢â‚¬â„¢s largest economy by 2027, according to Goldman Sachs Group Inc. chief economist Jim OÃ¢â‚¬â„¢Neill.
ChinaÃ¢â‚¬â„¢s surpassing of Japan Ã¢â‚¬Å“is a marker of its increasingly dominant role in the global economy,Ã¢â‚¬Â said Eswar Prasad, a senior fellow at the Brookings Institution and former head of the China division at the International Monetary Fund. Ã¢â‚¬Å“The resilience of ChinaÃ¢â‚¬â„¢s growth during the crisis enabled a number of other countries, particularly commodity-exporting economies, to ride on its coattails.Ã¢â‚¬Â