Japan says it is “happy for all of Asia”
that China is on course to replace the U.S. as the globes top economy.
Even with encouraging growth of nearly 4
percent last year, Japan has finally relinquished their forty year hold on the
title of second largest world economy, as China stormed past them on their
relentless march toward the U.S. and the top of the pack.
Japans government welcomed the news saying
it was a boost for the region and that the figures raised hope for some major
recovery in their export trade.
Indeed China, the world’s biggest
population, is a huge market for Japan and news of their booming economy could
well be more important than a higher place on the economic pecking order.
“It’s definitely not about a meaningless
economic ranking,” said Kaoru Yosano, Japans economics minister, “We welcome
the prosperity of our important neighbours. Any figures which hint at
development for own population, and those in the region, is good news as far as
we are concerned. We are happy for all of Asia”
All this is a far cry from the situation in
the 80’s when Japans ever increasing economy brought some admiration but mostly
fear from their neighbours. Japan hit rocky waters though, as the property boom
subsided and the country settled into a period of muted growth in their worst
decade, the 90’s.
Meanwhile the transformation that has taken
place in China is startling to say the least. From understated, poverty ridden,
communist state to global economic kingpin which is now targeting the U.S. to
become the world’s number 1, which may happen as soon as the coming decade.
China also hopes to improve its GDP per
head. With rising incomes and the tourism sector expanding at an exponential
rate the signs are positive.
“When you look at the sheer scale of Chinas
economy, it looks set to totally eclipse any other nation very soon,” said James
Coleman, Managing Director and co-head of Portfolio Trading at Softbank CIBC
International, “the country still has a way to go when it comes to raising the
standard of living across the population spectrum however,” he added.
