Japan Comes in as Third Biggest Economy, Overtaken by China

Japan’s economy shrank slightly in the final quarter of 2010, according to data released on Monday. Japan has now been officially overtaken by China as the world’s second largest economy. But the Japanese Cabinet Secretary is upbeat about the country’s per capita GDP.

[Yukio Edano, Japanese Cabinet Secretary]:
„Although we have been overtaken in terms of country’s GDP, as you have pointed out, Japan is still around 10 times higher than China in terms of per capita GDP.“

The average Japanese earns the equivalent of around forty-two thousand U.S. dollars a year, with the average Chinese earning only around forty-two hundred.

On a nominal dollar basis, Japan’s GDP was $5.47 trillion in calendar 2010, overtaken for the global number two rank by China with GDP at $5.88 trillion. Japan’s Gross Domestic Product (GDP) shrank slightly in October through December, marking the first contraction in five quarters.

After the economic numbers, Japanese shares rose early, while the yen eased against the dollar.

Japan’s economy is emerging from a lull and is seen recovering moderately this year as exports and factory output pick up on demand from China, the United States and emerging nations.

Even so, some in the Japanese capital expressed their desire to have Japan jump-start growth again.

[Kyoko Otoya, Retiree]:
„I want people to work to help Japan stage a comeback. We can’t be losing to the likes of China.“

Others blame the government.

[Shigeo Katabami, Company Employee]:
„Japan may be done for if it doesn’t change the way it’s been doing things. China is facing a lot of inflation but even so, it’s all about politics in Japan.“

Positive signs in economic data in January prompted the government to upgrade its economic assessment and it seems likely the Bank of Japan will hold off on monetary easing measures.

Foto: NTDTV