Japan has yielded second-largest economy to China in 2010, a year that saw the archipelago has yet to restart its growth despite weakness in consumption and exports in the last quarter. The gross domestic product (GDP) of Japan, in nominal terms, amounted to 474.2 billion from 2010 to 5 dollars, against 5 878 600 000 000 dollars for that of China, according to statistics released Monday by the Japanese government.
The archipelago has lost its position as second largest economy in that capacity since 1968, behind the United States that China might even dethrone by 2025, according to estimates by the World Bank and various financial institutions. GDP per capita of Japan remains more than ten times that of a Chinese, according to the IMF.
China has for years a growth rate approaching or exceeding 10%, with GDP still grew by 10.3% in real terms in 2010. The Japanese economy has in turn raised in 2010 suffered a severe recession during the global crisis. GDP, which had contracted by 1.2% in real terms in 2008 and 6.3% in 2009, grew by 3.9% in 2010, but this failed to preserve the archipelago its second position.
End of 2010, Japan's GDP was still below its level before the crisis. The Japanese economy has been driven in the first nine months of the year by exports to emerging markets, especially to China, its biggest trading partner, and temporary government subsidies that have boosted consumption.
Japan's GDP has, however, by 0.3% in the fourth quarter from the third, or 1.1% annualized. In the fall, consumption has been affected by the end of support programs. The authorities have indeed ceased to support the acquisition of vehicles "green", then reduced the assistance available for the purchase of televisions, refrigerators and air conditioners energy efficient.
Another obstacle to growth by year end, the authorities have reduced their investment spending, while Japan must tighten its belt to reduce its huge debt estimated at around 200% of its GDP. Supporting factor for the activity so far, exports have shrunk themselves also in the fourth quarter, hampered by the surging yen, which outcrops in the summer of 2010 its highest level in fifteen years against the dollar and nine years vis-à-vis the euro, hurting the competitiveness of Japanese firms abroad.
Japanese growth is expected to resume in the first quarter of 2011, in Japan avoiding falling into recession, with higher demand from abroad, including the United States. The economy of the islands could also benefit from the effect of stimulus measures nearly 6,000 billion yen (53.5 billion euros) adopted in late 2010 by the center-left majority to fight against persistent deflation in the archipelago for nearly two years. 
The archipelago has lost its position as second largest economy in that capacity since 1968, behind the United States that China might even dethrone by 2025, according to estimates by the World Bank and various financial institutions. GDP per capita of Japan remains more than ten times that of a Chinese, according to the IMF.
China has for years a growth rate approaching or exceeding 10%, with GDP still grew by 10.3% in real terms in 2010. The Japanese economy has in turn raised in 2010 suffered a severe recession during the global crisis. GDP, which had contracted by 1.2% in real terms in 2008 and 6.3% in 2009, grew by 3.9% in 2010, but this failed to preserve the archipelago its second position.
End of 2010, Japan's GDP was still below its level before the crisis. The Japanese economy has been driven in the first nine months of the year by exports to emerging markets, especially to China, its biggest trading partner, and temporary government subsidies that have boosted consumption.
Japan's GDP has, however, by 0.3% in the fourth quarter from the third, or 1.1% annualized. In the fall, consumption has been affected by the end of support programs. The authorities have indeed ceased to support the acquisition of vehicles "green", then reduced the assistance available for the purchase of televisions, refrigerators and air conditioners energy efficient.
Another obstacle to growth by year end, the authorities have reduced their investment spending, while Japan must tighten its belt to reduce its huge debt estimated at around 200% of its GDP. Supporting factor for the activity so far, exports have shrunk themselves also in the fourth quarter, hampered by the surging yen, which outcrops in the summer of 2010 its highest level in fifteen years against the dollar and nine years vis-à-vis the euro, hurting the competitiveness of Japanese firms abroad.
Japanese growth is expected to resume in the first quarter of 2011, in Japan avoiding falling into recession, with higher demand from abroad, including the United States. The economy of the islands could also benefit from the effect of stimulus measures nearly 6,000 billion yen (53.5 billion euros) adopted in late 2010 by the center-left majority to fight against persistent deflation in the archipelago for nearly two years.
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