China now the second largest economy after overtaking Japan

At the end of 2010, Japan's economy was worth a staggering 3.414 trillion ($5.474 trillion),
figures from Tokyo shown. However, at the same time China showed a huge growth with a
total worth close to $5.8 trillion.

This places China in the position of the second largest economy in the world, falling behind
the US.

The current boom in manufacturing in China has created a huge growth that analysts believe
is enough to replace the US within the next decade, providing the rate of growth remains the
same.

"It's realistic to say that within 10 years China will be roughly the same size as the US
economy," says Tom Miller of GK Dragonomics.

Now the US has always been seen as the worlds powerhouse; the worlds leaders, and we
wonder if the US government are analysing China's current trend growth.

Japan's "lost decade"

Japan hold some of the most recognisable companies in the world, such as Sony, Toshiba and
Honda but consumer demand and export trading has fallen since the recession began.

However, it's quite welcoming news for Japan as they are a neighbouring country.

"As an economy, we are not competing for rankings but working to improve citizens' lives,"
replied Economics Minister Kaoru Yosano on questioning of Japan's feeling towards Japan's
drop.

It was the first time in five quarters that the economy contracted and it was caused by a dip in
domestic and export demand, analysts said. Consumer spending fell 0.7% in the final three
months of 2010, the figures showed.

Overall Conclusion

Do you think the US could lose first place to China in the economy race?

The analysts agree that China is ever growing, but the whole picture is not represented.

GDP per head in China is estimated at $4,500 whereas in Japan it is estimated to be $40,000
GDP per head. This means the average citizen in Japan are much, much wealthier than those
who live in China.
China now the second largest economy after overtaking Japan

At the end of 2010, Japan's economy was worth a staggering 3.414 trillion ($5.474 trillion),
figures from Tokyo shown. However, at the same time China showed a huge growth with a
total worth close to $5.8 trillion.

This places China in the position of the second largest economy in the world, falling behind
the US. The current boom in manufacturing in China has created a huge growth that analysts
believe is enough to replace the US within the next decade, providing the rate of growth
remains the same.

"It's realistic to say that within 10 years China will be roughly the same size as the US
economy," says Tom Miller of GK Dragonomics.

Now the US has always been seen as the worlds powerhouse; the worlds leaders and we
wonder if the US government are analysing China's current trend growth.

Japan's "lost decade"

Japan hold some of the most recognisable companies in the world, such as Sony, Toshiba and
Honda but consumer demand and export trading has fallen since the recession began.
However, it's quite welcoming news for Japan as they are a neighbouring country.

"As an economy, we are not competing for rankings but working to improve citizens' lives,"
replied Economics Minister Kaoru Yosano on questioning of Japan's feeling towards this
drop.

According to the latest figures from Tokyo, Japan's economy contracted at an annualised rate
of 1.1% in the final three months of 2010. Growth declined 0.3% from the previous quarter. It
was the first time in five quarters that the economy contracted and it was caused by a dip in
domestic and export demand, analysts said. Consumer spending fell 0.7% in the final three
months of 2010, the figures showed.

Looking at the figures shown in this graph, it's quite scary how China have grown so quick in
comparison with the other leading countries.

Milkbusters Thoughts

We all know that the US think of themselves of the major rulers that run the world, so this
news must be devastatingly scary to them. Analysts believe that within the next decade China
will become the worlds leading economy, and with this a new era.

America has had a very troublesome few years with the aftermaths of the recession, resulting
in loss of consumer demand and GDP per head.

We believe that the US government will not rest until their economy growth is large enough
to fade Chinas growth away, not simply for GDP but as a matter of a symbol to remind
everyone who is the worlds leader.

Posted by Shane Stocks