China has overtaken Germany to become the world’s third largest economy in 2007 after the Chinese authorities on Wednesday revised upwards the figures for growth during that year.
According to the IMF, Germany’s GDP was $3,321bn in 2007, using market exchange rates for that year, while under the new estimate China’s GDP was $3,382bn. US GDP was $13,807bn and Japan $4,382bn.
China is also close to surpassing Germany to become the biggest exporter in the world.
China’s National Bureau of Statistics said that the economy expanded by 13 per cent in 2007, a sharp increase from the 11.9 per cent growth rate the authorities had previously stated.
Germany’s economy has also slowed sharply and may have contracted by as much as 2 per cent in the fourth quarter 08, the country’s statistical office said.
With only the US and Japan now larger than China, the new figures highlight the rapid transformation the Chinese economy has undergone over the past 30 years since the Mao-era controls were first eased, although the economy is now suffering the toughest period in a decade as a result of the global financial crisis.
It will not be too long before China economy overtakes Japan.
