China overtakes Japan as world's second-largest economy in Q2-2010
16 Aug 2010
China's booming economy that was estimated to surpass Japan in by end 2010 to become the world's-second largest economy, achieved it in the April-June quarter itself as Japan's economy grew at the slowest pace relegating it to the third place behind the US and China.
Weak consumer and business spending and a brief lull in exports resulted in Japan's economy growing at a slower pace in the second quarter of 2010 as the country continues to grapple with the uncertainty of a full global economic recovery.
Japan's gross domestic product (GDP) grew at an annualised rate of just 0.4 per cent in the three months ended 30 June, the government said today, which is below the expectations of Kyodo news agency survey of 2.3 per cent growth as well as the same rate forecasted by economists polled by Dow Jones Newswires.
Japan's economic output for Q2 was $1.288 trillion compared with China's $1.337 trillion, Japan's Cabinet Office said in a statement today. Following the release of the quarterly figures, the Nikkei 225 index declined by 1.48 per cent.
Weak demand at home and exports cooling in the second quarter due to Beijing reining in government spending and a still fragile US as well as the eurozone economy, sent Japan's GDP growth falling below analysts' expectations.
Japan's exports have also been hurt by a strong yen, which recently touched a 15-month high against the dollar.
