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Friday, 22nd January 2010
In Business In Japan,

Japan 'could lose place as second-largest economy'

Japan may not be the world's second-largest economy for much longer after China reported larger than expected growth for last year (2009).

Data published yesterday (January 21st) revealed that during 2009, gross domestic product (GDP) in China increased by 8.7 per cent - which could mean it could lie second in the list of world economies.

Figures for Japan will not be revealed until February, but reports suggest that the economy may have shrunk by six per cent over the last year.

The US remains in first place in terms of annual GDP.

Ma Jiantang, commissioner of the National Bureau of Statistics, said: "China has become the first, on the whole, to achieve recovery and stabilisation in its economy."

This week, the Japanese government warned that the country could experience job losses and deflation, despite a claim that the economy is on the road to recovery.

Interest rates in Japan are predicted to remain close to zero per cent.

Written by Susan Ballion