BEIJING - China sharply raised the official size of its economy Tuesday after taking into account emerging service industries, saying its output last year was 16.8 percent higher than previously reported.

The new figures mean China's mainland overtook Italy as the world's 6th-largest economy in 2004, behind France and the United Kingdom. China would jump to No. 4, after only the United States, Japan and Germany, if it included Hong Kong, a Chinese territory that reports its economic figures separately.

The new Chinese output tally of 15.987 trillion yuan ($1.981 trillion) followed a survey meant to gather more accurate data on restaurants, retailers and other service businesses, which were underreported previously.