China’s economy became the second largest on earth after the USA in Q2 2010 as figures today reveal it has overtaken Japan.
According to the Japanese cabinet office, its Q2 GDP increased by 0.1 per cent to plus 0.4 per cent, totalling 110.517trn Yen ($1.288trn, £789bn). This was lower than China’s 9.096trn Yuan ($1.3369trn, £859bn) Q2 GDP. China’s GDP rose by 10.3 per cent in Q2 2010.
Reuters says that Japanese parliamentary secretary Keisuke Tsumura told reporters that it is too early to officially compare the two Asian countries. He said: “It would be correct and fair to compare the figures for the whole year. It will be very misleading to simply compare quarterly figures.”
Figures from both governments show that in the first six months of 2010, Japan’s GDP before adjustments totalled $2.5871trn, larger than China’s $2.5325trn over the same period.
USA is still the largest economy in the world with a Q2 2010 GDP of $14.597trn (£9.383trn). The UK is the sixth biggest economy in the world with a Q1 2010 GDP of £325bn.
Fidelity China special situations manager Anthony Bolton says: “China’s domestic economy will show better growth than most other regions in the world. My enthusiasm for China after three months in the region is unstinted. I believe many areas in China will show rapid progress over the next 10 years.”