It's official: China is world's second largest economy

Japan has lost its 42-year ranking as the world's second-biggest economy after its economy contracted in the last quarter due to weak consumer spending and a strong yen. Figures from Tokyo show Japan's economy contracted at an annualised rate of 1.1% in the final three months of 2010, while growth fell 0.3% compared to the previous quarter. In contrast China's growth has been driven by the country enjoying a long-running manufacturing boom and the expansion of its domestic industries and infrastructure. The news will not be met with surprise as many commentators believe it is inevi...