China in the running for world’s second largest economy

China is in great shape to take over Japan’s spot as the world’s second largest economy next to the United States, based on the data... More Below... Posted by on Aug 16th, 2010 and filed under News, World.

Data from the International Monetary Fund

China is in great shape to take over Japan’s spot as the world’s second largest economy next to the United States, based on the data released Monday.

Japan’s gross domestic product (GDP), reached $1.29 trillion for the 2nd quarter, announced its Cabinet Office. China on the other hand had an official figure of $1.34 trillion for the same period.

According to Economist Frederic Neumann from HSBC in Hong Kong, China is forecasted to take the lead over Japan at year’s end, getting the No. 2 spot of the World’s Top economies. The final figures, however, won’t be available until 2011.

The International Monetary Fund estimates China’s output to be around $5.4 trillion by the end of 2010, and as for Japan, an estimated GDP at $5.3 trillion.

Another analyst comments: “Basically, China’s underlying growth rate is going to be about 8 percent over the next decade. Japan’s underlying is going to be about 1 percent,” said Jesper Koll, an economist with JPMorgan in Tokyo. “In 10 year’s time, the Chinese economy will be twice the size of the Japanese economy.”

Source: CNN