China Passes Japan As Worlds 2 Economy

02.15.11 | FL News Team

(Tokyo)  --  China has surpassed Japan as the world's second-largest economy.  While China's economic fortunes have been on the rise for years, Japan's economy has been anemic compared to other major rich nations.

However, analysts don't think Japan will be down for long.  They expect Japan to make a recovery as it increases exports to China and other parts of Asia.  China is expected to tighten its monetary policy in the next few months, which could slow down demand.  The U.S. remains the world's largest economy.