15 Feb 2011

China now No 2 world economy

6:18 am on 15 February 2011

China has formally overtaken Japan as the world's second largest economy.

Latest official figures from Tokyo show Japan's gross domestic product increased by just under 4% in 2010, a far slower rate of growth than China's and not enough to keep its economy ahead.

The BBC reports Japan's economy was worth $US5.474 trillion at the end of 2010. China's economy was closer to $US5.8 trillion in the same period.

Japan has been hit by a drop in exports and consumer demand, while China has seen a manufacturing boom.

At its current rate of growth, analysts see China replacing the United States as the world's top economy in about a decade.