China is already the second largest economy in the world

China is a consumer more important worldwide.China to pull the Japan status of the second largest economy in the world where he served for 42 years, according to figures published officially.

Monday, the Japan unveiled the figures of gross domestic product (GDP) and the last quarter of last year. All 2010 GDP increased by 3.9% versus overwhelming 10.3% of China.

The Japanese economy was hit by a drop in exports and the demands of consumers, while China enjoys a boom in the manufacture of products.

At the current rate of growth, analysts believe China will surpass the United States as the largest economy in the world in a decade.

"It is realistic to say that in ten years, China will have more or less the same size as the US economy."UU. ", said Tom Miller GK Dragonomics, an economic consulting firm based in Beijing.

There is a debate about the exact time that the Japan ceased to be the second largest economy in the world, and some analysts believe that happened in the third quarter of last year.

China 2010 consolidated its economic recovery.

The figures for the entire year allows a more accurate comparison.

Monetary Fund International, the gross domestic product of the Japan was 5.39 billion in 2010, while China preliminary figures indicate that its GDP last year was $ 5.75 billion.

He IMF estimated the Japan economy increased by 2.8% in 2010, according to the IMF, while China's growth is expected to have been an impressive 10% of its revised figures.

Most of China's growth has been funded by investment in manufacturing and the expansion of national industries in China, in addition to the infrastructure.

These activities led to an increase in exports, when China became a centre of production for multinational brands wanting to take advantage of lower costs of labour, in addition to the expansion of rail and road links.

"He was focusing on infrastructure, says Duncan Innes-Ker headquarters in Beijing by the Economist Intelligence Unit (EIU) consultant."

"They have been constructed over the expected demand." And as infrastructure was there, companies were there.

While Chinese economy grew up, created new jobs that made people leave rural areas and Agriculture and to find better-quality jobs in urban centres.

Key to huge evolution towards the towns of persons working in the field, says Miller of GK Dragonomics advisors.

"Urbanization is a change in structural key in 30 years."

At the same time, investment in China from abroad to grew, helps increase the value of goods and assets to new heights.

"The level of investment in China is quite impressive," Innes Ker.
"In 2009, we saw 25% growth year after year in real terms of investment." "It is unprecedented for a large economy."

However, of Japan was wrong to take care of what many analysts call a "lost decade".

At the end of the ' everyone bought the 1980s Japanese electronics.

In the years 1980 Japanese - products such as vehicles and electronics – are in demand worldwide, and at its peak the economy grew more than 7% per annum.

But this has fueled in turn a disproportionate expense and a huge debt and towards the years 1990 bubble had developed stock markets and the property.

"The value of the land was not realistic and the Government is trying to tackle the growing debt. "The productivity of the economy really suffered," says Innes Ker.

Today, there are signs that the Japan has succeeded in channelling its economy, but must still deal with the impact of an ageing population and low consumer demand.

Despite this, most economists agree that China as a whole is growing and the average person becomes richer, the only compares the size of its economy to the Japan not paint an accurate picture.

"GDP per capita in China is about US$ 4,500, but is approximately $ 40 000 to Japan, says Miller.

"Most people in China is still poor, there are more people living in the countryside to the cities." "The average Japanese are much richer than average Chinese", he adds.

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And while China can be mounted in the array of economic powers, it is not without its challenges.

The rapid pace of expansion is accelerating inflation and analysts warned of a possible bubble of gestation in the real estate market.

The Government faces a growing international criticism for its monetary policy and is responsible for keeping the yuan underrated.

More, it is more difficult to pursue a very rapid growth

Tom Miller, GK Dragonomics

Faced with these problems, economists expect China's economic growth will slow down considerably.

"China should continue to grow for several years, but growth will be reduced slightly to 7.8%, says Miller of GK Dragonomics."

«More, it is more difficult to continue to grow very rapidly.

But even a slow pace, China must continue climbing towards the place in the table of elas large economies in the world.

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