Japan Loses Standing As No. 2 Economy

Ouch! Japan has lost its standing as the number two economy to China, according to the Associated Press via My Way.com:

TOKYO (AP) - Japan lost its place as the world's No. 2 economy to China in the second quarter as receding global growth sapped momentum and stunted a shaky recovery.

Gross domestic product grew at an annualized rate of just 0.4 percent, the government said Monday, far below the annualized 4.4 percent expansion in the first quarter and adding to evidence the global recovery is facing strong headwinds.

The figures underscore China's emergence as an economic power that is changing everything from the global balance of military and financial power to how cars are designed. It is already the biggest exporter, auto buyer and steel producer, and its global influence is expanding.

It is hard to believe that in 1972, Japan was an economic powerhouse when President Richard M. Nixon made his historic trip to China. At that time, China was pretty much an isolated and backward communist nation.

To read the full article, go here.