JAPAN: Fourth quarter GDP preliminary figures confirm China has overtaken Japan to become the world's second biggest economy

Record ID: 465259

  • Title: JAPAN: Fourth quarter GDP preliminary figures confirm China has overtaken Japan to become the world's second biggest economy
  • Date: 15th February 2011
  • Summary: NIKKEI AVERAGE AT 10687.38 UP 81.73 CHANGING TO 10689.66 UP 84.01 ELECTRONIC STOCK BOARD SHOWING STOCK PRICES TSE OFFICIALS MONITORING TRADING OFFICIALS MONITORING TRADING MORE OF OFFICIALS MONITORING TRADING
  • Embargoed: 2nd March 2011 12:00
  • Keywords:
  • Location: Japan, Japan
  • Country: Japan
  • Topics: International Relations,Economic News
  • Reuters ID: LVA96G53WVO6H69DC5EXHM4O110Z
  • Story Text: Japan's economy shrank slightly in the final quarter of 2010 and has been overtaken by China making it the world's third's largest economy, data released on Monday (February 14) showed.
    Gross domestic product (GDP) shrank 0.3 percent in October-December from the previous quarter, which translated into an annualised 1.1 percent and marked the first contraction in five quarters.
    On a nominal dollar basis, Japan's GDP was $5.47 trillion in calendar 2010, overtaken for the global No.2 rank by China with GDP at $5.88 trillion.
    After the economic numbers, Japanese shares rose early, while the yen eased against the dollar.
    While Japan was surpassed by China, Japanese Chief Cabinet Secretary Yukio Edano pointed out that Japan is still ahead of China in terms of GDP per capita.
    "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. We have to make use of our affluence as well as the development of neighboring countries to help pass on our wealth to the next generation," Edano said when asked by reporters to comment on Japan being overtaken by China.
    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 jumpstart growth again.
    "I want people to work to help Japan stage a comeback. We can't be losing to the likes of China," said 80 year-old retiree Kyoko Otoya.
    Others blamed the government.
    "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," said 31 year-old Shigeo Katabami.
    Japan's economy has historically been reliant on exports although many manufacturers have moved factories overseas, with the current strength of the Yen also helping to put a damper on goods made in Japan itself.
    "I think Asia is going to keep on growing. While Japan is trying to expand its market share in China, I think Japan has to also work on re-invigorating itself as well," said 21 year-old college student Yukari Takahashi.
    Although GDP growth was negative, other encouraging signs in economic data has prompted the government to upgrade its economic assessment last month and dampened expectations of an imminent monetary easing by the Bank of Japan.
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2011. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register