China becomes world’s fourth largest economy Printer Friendly  Email Article
Jul. 5, 2006 (China Knowledge) - China, with its large gross domestic product (GDP) figures, has outstripped the U.K. to become the world’s fourth-largest economy after the U.S., Japan, and Germany, China Daily reported quoting the World Bank's latest calculations.
The World Bank said that China produced US$2.26 trillion in output in 2005, which was 0.004% or US$94 million more than Britain.
China last year overtook Britain as the fourth-largest economy based on GDP converted into U.S. dollars at current exchange rates.
However, the World Bank’s ranking calculates gross national income converted into dollars using a method of currency calculation known as the Atlas method, which is supposed to smooth out exchange rate fluctuations through the use of a 3-year average.
Gross national income comprises gross domestic product (GDP) plus net inflows of income such as rents, profits and salaries from abroad.
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