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
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.