China placed second in world economy
China overtakes Japan as the world’s No. 2 economy after a global growth sapped momentum and a shaky recovery.
Gross domestic product grew an annual rate of just 0.4 percent, far below the annualized 4.4 percent expansion in the first quarter adding to the evidence that the global recovery is growing strong. The figures underscore China’s emergence as an economic power that is changing everything from the global balance of military and financial power. It is already the biggest exporter, auto buyer and steel producer. China is growing at about 10 percent a year, while Japan’s economy is forecast to grow between 2 to 3 percent this year.
Japan has held the No. 2 spot after the U.S. since 1968, when it overtook West Germany. From the ashes of World War II, the country rose to become a global manufacturing and financial powerhouse. China’s growth has been spectacular, its voracious appetite fueling demand for resources, machinery and products from the developing world as well as rich economies like Japan and Australia.