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. Last Updated: 07/27/2016

China Now the World's No. 4 Economy

BEIJING -- China has squeaked by Britain by the tiniest of margins to become the world's fourth-largest economy, according to the World Bank's latest calculations.

The World Bank said by its official measure China produced $2.263825 trillion in output in 2005. That was just $94 million, or 0.004 percent, more than Britain.

China comfortably overtook Britain last year based on each country's gross domestic product converted into U.S. dollars at current exchange rates.

But the World Bank's widely watched ranking measures gross national income converted into dollars using the "Atlas" method of currency conversion, which smoothes out exchange rate fluctuations by using a three-year average.

Gross national income comprises gross domestic product plus net inflows of income such as rents, profits and salaries from abroad.