It is interesting to find out that Japan has successfully retained its position as the world's second largest economy, the position is maintained for more than 40 years, with the economy grew at a faster-than-expected pace of 1.1% in the last three months of 2009. The cabinet office in Tokyo reported that Gross domestic product rose at an annual 4.6 percent pace in the three months ended Dec. 31, fueled by the robust exports and a pickup in consumer demand at home. The Japanese economy was valued at about US$5.1 trillion in 2009.
On the other hand, its biggest rivalry, China ‘s GDP was valued at about US$4.91 trillion, up by a stunning growth of 8.7% in 2009. The fastest growing economy is currently at the third position of the world largest economy, behind US and Japan. However it is almost no doubt at all and almost certain that China will overtake Japan in 2010 as the world second largest economy with the GDP forecast of 9.5% in 2010, driven by the strong domestic consumption and corporate investment. The annual growth will continue to benefit from the stimulus package amounted to $586 billion to bolster its economy.
However the economy ranking serves little significance to the livelihood of the people of both the countries. Japan’s economy remains fragile and could drag growth in the months ahead as the impact of government incentives wane. Rattled by deepening deflation and falling wages, businesses remain cautious about spending and hiring. On the other hand, China’s is facing with a great challenge to maintain a balance between the economic growth needed to create sufficient jobs for the country's 1.3 billion people, and at the same time struggling not to let the economy overheat and drive up the cost of basic goods and housing for its people.
Chinese premier Wen Jiabao pointed out in his recent lunar new year speech that "All the things we do are aimed at letting people live more happily with more dignity". These are really words of wisdom from my point of view. Looking at the high unemployment rates in US and the Euro zone, what dignity can we say if the people can not even have a job to support themselves and the families?
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