There’s no denying the strength of the Chinese economy now. Last week, it was announced that the size of the Chinese economy has now surpassed one of the biggest economies in the world; Germany.
After China’s revised GDP numbers were released, it became official that China has overtaken Germany as the world’s 3rd largest economy.
For 2007, China’s nominal GDP rate registered 13%, while its GDP totaled 25.73T Yuan. On the other hand, Germany’s 2007 GDP was only $$3.32T.
This is another example of how China’s economic growth is outpacing most countries during these tough economic times.
Countries like Germany have taken a huge hit in the current financial and economic environment. In fact, the weakening demand for Germany’s exports (it’s one of the largest exporters in the world) continues to weigh heavily on the German economy, and that’s a trend I expect to continue throughout 2009.
There are only two economies standing in China’s way from becoming the world’s largest economy, they are the USA and Japan. Do not be surprised to see China charge pas Japan in the next three to four years as Japan is burdened with a deep recession due to its aging population and lack of jobs for younger Japanese workers.
Further, expect to see Germany and Japan’s economies remain soft and slugish in the coming months and years.
China’s economic strength and size are solid reasons why investors are continuing to focus on China now.
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