China Unveils Robust 2009 Growth Figures

It seems the economic slowdown could not do much to the Dragon's ever swelling economy. For the Chinese, the recession came and was conquered! China is now all set to go past Japan to become the world's second largest economy, just behind the United States, if their recently unveiled growth are to be believed. Japan will announce its latest gross domestic product (GDP) figures next month. The Japanese economy is expected to have contracted by about 6% in 2009, further aiding the Chinese cause. China is expected overtake the US to become the world's biggest economy by 2030, with India coming up to no.3 and Japan is expected to drop down to no.5.

China, on Wednesday, said its economy expanded by a staggering 8.7% in 2009, a year when most western economies were in a hapless condition. These figures have exceeded even the Communist led government's own initial expectations! This rate of growth 2008's figure of 10.7% when the downturn wasn't very severe. China's GDP figure were announced by Ma Jiantang, who heads the National Bureau of Statistics. He lauded his country's economic performance by saying that China had faced "severe difficulties" in 2009, but its economy has now recovered and is moving in the right direction.

But Mr Ma downplayed speculation that Chinese economy had now overtaken Japan's. "According to the UN standard - that is $1 a day - there are still 150 million poor people in China. That is China's reality," he said. "So despite the increase in our GDP and economic strength, we still have to recognize that China is still a developing country." On inflation, he said that price rises were "mild and under control."

Meanwhile, the World Bank has cautioned that the global economic recovery may slow later this year as the impact of stimulus packages gradually wanes. In China, the GDP growth was spurred by a $586 billion stimulus package to bolster its economy. It would be a challenge for the communist regime to continue this growth rate even after the effects of the stimulus fades out.