Is this a shock? “No” answered Robert Feldman, chief economist at Morgan Stanley MUFG Securities in Tokyo. “People have been expecting the Chinese economy to grow at a rapid pace and become physically larger than Japan for many years, so it is not a surprise” He clearly stated. (Thomson Reuters, 2010).
This statement is not just a random forecast or playing guess. According to both Government figures released on Monday, 9 August, China's second-quarter unadjusted GDP of $1.3369 trillion surpasses Japan's second-quarter unadjusted GDP totaled $1.2883 trillion (Thomson Reuters, 2010 and The New York Times Company, 2010). Even though in the first and second quarter of 2010 Japan's GDP amounted to $2.5871 trillion slightly surpassed China's $2.5325 trillion, China’s economy will certainly be bigger than Japan’s by the end of 2010. Why? Japan’s economy is mature enough and the growth has been stagnant for more than a decade while Chine is an emerging country in which it has a lot of room of expansions and China has proven its power and strength by maintaining the double digit growth figure.
Even though Japan’s GDP is ranked 3rd, with a per capita of $37,800, Japan’s people are much richer than China’s. Kyohei Morita, chief economist at Barclays Capital in Tokyo mentioned that with China’s per capita at only $ 3,600, China overtaking Japan is just a symbolic (HuffingtonPost.com, Inc., 2010). However, this symbolism defeat might be a wake-up call especially for Japanese leader, claimed Schulz of the Fujitsu Research Institute.
Besides, on Wednesday 11 August, Dollar is reported to decline for 10 percent in the last three months against yen, and the figure shows its lowest drop since April 1995 to 84.72 yen (The New York Times Company, 2010). The fact that Japan’s slow growth is far below the forecasted figure and strong yen might be signs that Japan is suffering the effects of deflation while struggling to boost its export.
Speaking global warming, China’s surprising achievement is not only by defeating Japan taking the second largest economy country, but also by being the biggest emitter of greenhouse gases in 2006 (The New York Times Company, 2010). Having this title does not make China proud. This country shows its enthusiasm to play a greater role in the debate over climate change and how to slow the growth of greenhouse gases. Moreover, China has created a program to reduce the energy used by 20 percent by the end of this year compared to 2006.
These ambitious attitudes, not to mention the three decades of spectacular growth and being the world’s biggest exporter passing Germany last year , has made China in the spotlight and forecasted to pass United States to become no.1 economy by 2030 (Thomson Reuters, 2010).
This statement is not just a random forecast or playing guess. According to both Government figures released on Monday, 9 August, China's second-quarter unadjusted GDP of $1.3369 trillion surpasses Japan's second-quarter unadjusted GDP totaled $1.2883 trillion (Thomson Reuters, 2010 and The New York Times Company, 2010). Even though in the first and second quarter of 2010 Japan's GDP amounted to $2.5871 trillion slightly surpassed China's $2.5325 trillion, China’s economy will certainly be bigger than Japan’s by the end of 2010. Why? Japan’s economy is mature enough and the growth has been stagnant for more than a decade while Chine is an emerging country in which it has a lot of room of expansions and China has proven its power and strength by maintaining the double digit growth figure.Even though Japan’s GDP is ranked 3rd, with a per capita of $37,800, Japan’s people are much richer than China’s. Kyohei Morita, chief economist at Barclays Capital in Tokyo mentioned that with China’s per capita at only $ 3,600, China overtaking Japan is just a symbolic (HuffingtonPost.com, Inc., 2010). However, this symbolism defeat might be a wake-up call especially for Japanese leader, claimed Schulz of the Fujitsu Research Institute.
Besides, on Wednesday 11 August, Dollar is reported to decline for 10 percent in the last three months against yen, and the figure shows its lowest drop since April 1995 to 84.72 yen (The New York Times Company, 2010). The fact that Japan’s slow growth is far below the forecasted figure and strong yen might be signs that Japan is suffering the effects of deflation while struggling to boost its export.
Speaking global warming, China’s surprising achievement is not only by defeating Japan taking the second largest economy country, but also by being the biggest emitter of greenhouse gases in 2006 (The New York Times Company, 2010). Having this title does not make China proud. This country shows its enthusiasm to play a greater role in the debate over climate change and how to slow the growth of greenhouse gases. Moreover, China has created a program to reduce the energy used by 20 percent by the end of this year compared to 2006.
These ambitious attitudes, not to mention the three decades of spectacular growth and being the world’s biggest exporter passing Germany last year , has made China in the spotlight and forecasted to pass United States to become no.1 economy by 2030 (Thomson Reuters, 2010).
