China has revised its 2004 gross domestic product (GDP) up by $284 billion or 16.8%, an unprecedented move that analysts say could put the country in fourth place in the global rankings.
'Preliminary estimation using results from the economic census indicates that China's GDP for the year 2004 was 15,987.8 billion yuan ($1.98 trillion dollars) at current prices, representing an increase of 2,300 billion yuan ($284 billion) or 16.8% over the preliminary estimated figure using regular annual statistical data,' the National Bureau of Statistics said.
Anticipating the figures, analysts had said the huge statistical revision could see the world's fastest growing major economy leapfrog Italy, France and Britain to be officially recognized as the world's fourth-biggest.
However, Chinese officials said the new figures would mean that China had overtaken only Italy to rank sixth in the world, although the revision itself and its size shows how difficult such calculations must be. The generally accepted rankings are the US first and way out in front, followed by Japan, Germany, Britain, France and Italy.
Analysts believe that at the rapid pace China is growing - around 9% annually compared to very much slower France and Britain - it will likely catch up with them in a very short time, possibly this year or next. France posted GDP of $2 trillion in 2004 while Britain was on $2.14 trillion and Italy $1.67 trillion, according to World Bank figures.
Taking into consideration China's rapid GDP growth rate and its 2.1% yuan revaluation in July, the world's fastest growing economy was likely now in or close to fourth place, analysts believe.
Most analysts believe China's economy has been growing much faster than the official figure of around 9% and have regularly complained of how uncertain Beijing's figures can be. The authorities in turn have said they are doing their best to improve the data, with today's revision a part of that exercise.
Most of the extra output recorded in the revision was in services, a sector that was not properly measured in the past, the NBS said. That means the service sector's contribution to China's total GDP in 2004 rose from 31.9% to 40.7%, showing how services play an ever more important role in the economy compared to agriculture and industry.
