In 2010, Japan's nominal gross domestic product increased 1.8 percent from 2009 to ¥479.223 trillion. This is about $5.470 trillion, or some $404 billion (some ¥35 trillion) less than China's corresponding figure already announced. Thus it was confirmed this week that China has overtaken Japan as the world's No. 2 economic power — a position Japan had enjoyed since 1968 when it passed West Germany.
Given Japan's low birthrate, it is unlikely that it can achieve high economic growth as registered by emerging economies even if it overcomes its current deflation. In terms of per capita GDP, Japan climbed to second place in 1993 but fell to 16th in 2009 after falling to 19th in 2007 and 2008.
China is expected to achieve growth of 9 percent to 11 percent in 2011. The gap between Japan and China is likely to expand because China is expected to maintain high growth for the time being.