According to Wall Street Journal, China has passed Japan in 2010 to become the world’s second-largest economy.
After the U.S. Compare the two economies over the past 50 years, Japan ceded its spot as the world’s second biggest economy to China. In 2010, Japan’s nominal GDP was 479.223 trillion yen, or US$5.474 trillion, China’s was US$5.879 trillion.
Many called it an economic miracle, but it is hardly surprising to me. By simple calculation of rule of 72, with nearly 8% growth every year, it is no brainer that the Chinese economy has more than doubled in size in the past 10 years. Assuming the growth is reduced to 6% per year, the economy will double again in the next 12 years.
The next thing we will see is how China’s currency, Renminbi, starts to become the dominant currency in the world.