According to foreign reports, Japan's cabinet announced Japan's nominal GDP in 2010 on the morning of 14. Data show that after adjusting for seasonal factors, Japan's real gross domestic product (GDP) fell at an annual rate of 1.1% from October to December last year, to a total of US $5474.2 billion.    
According to Kyodo news, the real GDP of the fourth quarter of 2010 (October December) released by the Japanese government on the same day decreased by 0.3% compared with the previous quarter, showing negative growth again in the past five quarters. Japan's GDP is 404.4 billion US dollars less than China's, ranking third in the world.
The BBC reported that Japan is no longer the world's second largest economy, and its original position has been replaced by China. Japan's economy has been affected by the decline in exports and consumer demand, while China's manufacturing industry is booming. According to the International Monetary Fund, Japan's GDP in 2010 was 5.39 trillion US dollars, while China's GDP was 5.75 trillion US dollars. The group estimates that Japan's economic growth rate will be about 2.8% in 2010, while that of China will be about 10%.
According to an article in the Wall Street Journal, Japan's economy shrank in the fourth quarter of 2010 and gave up its position as the world's second largest economy to China. The main reason is that the end of auto subsidy policy has brought pressure on auto sales, and a new tobacco tax has hit tobacco sales. In addition, a stronger yen has also pushed down exports.
According to the report, this is the first time that Japan's GDP actually shrank since July September 2009. From July to September 2009, Japan's real GDP decreased by 1.9% after correction.