China- the third largest economy in 2007

The release of new statistical reports by the National Bureau of Statistics of China has put China as the third largest economy of the world in 2007. According to the new reports the growth rate of China economy during the financial year 2007 was 13% instead of the earlier figures of 11.9%. China has overtook Germany which was holding the number three position, preceded by the US and Japan.

According to the world economists, the recent growth rate of China shows the transformation this country has undergone in the last three decades especially after the Mao-era. If the current growth rate continues, it won't be too long before China overtakes the economy of Japan too.

For the financial year 2009, country has projected the growth rate of 8%, which according to experts is a bit difficult to achieve in the current economic scenario, but it is not impossible. As per the Goldman Sachs forecast, China economy will even overtake the economy of the US by the year 2040. The growing urbanization, and the technology front are the two strong points contributing towards the growth of the economy in China whereas ageing population and the cost of damage to the environment are the greatest stumbling blocks in the country's growth and may harm its future prospects to an extent.

Despite the achievement of such a high growth rate, China did not fare well on the list of World Bank's GDP per capita for 2007, based on purchasing power parity. The country is ranked 122nd placebehind the countries such as Armenia, Egypt and El Salvador.