Statistics on Hong Kong's Gross National Product (GNP) and External Factor Income Flows (EFIF) for the first quarter of 2008 are released today (June 16) by the Census and Statistics Department.
In the first quarter of 2008, Hong Kong's GNP increased by 6.5% over a year earlier to $427.3 billion at current market prices. The Gross Domestic Product (GDP), estimated at $409.3 billion at current market prices in the same quarter, recorded a 9.6% increase during the period. Compared with GDP, the value of Hong Kong's GNP was larger by $18.0 billion in the first quarter of 2008, representing a net external factor income inflow of the same amount, and equivalent to 4.4% of GDP in that quarter.
After netting out the effect of price changes, Hong Kong's GNP increased by 4.0% in real terms in the first quarter of 2008 over a year earlier. This was lower than the corresponding increase of 7.1% recorded for GDP in the same quarter.
Total factor income inflow into Hong Kong, estimated at $233.6 billion in the first quarter of 2008 and equivalent to 57.1% of GDP in that quarter, increased by 21.8% over a year earlier. Total factor income outflow, estimated at $215.6 billion in the first quarter of 2008 and equivalent to 52.7% of GDP of the same period, increased significantly by 31.2% over a year earlier. Taking the inflow and outflow together, a net external factor income inflow of $18.0 billion was recorded in the first quarter of 2008.
Within total factor income inflow, Direct Investment Income (DII) increased significantly by 43.3% over a year earlier, mainly due to the significant increase in earnings of some prominent local enterprises from investment abroad. Portfolio Investment Income (PII) increased by 6.8%, mainly attributable to the increase in dividend income received from holdings of non-resident shares listed on the Stock Exchange of Hong Kong. Other Investment Income (OII), however, recorded a drop of 15.6%, mainly due to the significant decrease in interest rates of the banking sector.
Within total factor income outflow, DII increased markedly by 36.9% over a year earlier, mainly attributable to the sustained growth in earnings of some prominent multinational enterprises from direct investment in Hong Kong. PII rose sharply by 52.8%, mainly attributable to the increase in dividend income received from holdings of resident equity securities. OII also recorded a slight increase of 2.9% over a year earlier, largely caused by increased liabilities of the local banking sector.
Analysed by country/territory, the mainland of China continued to be the largest source of Hong Kong's external factor income inflow in the first quarter of 2008, accounting for 33.6%. The British Virgin Islands (BVI) came next, with a share of 22.3%, reflecting continued investment income inflow from this tax haven economy where Hong Kong companies had set up a considerable number of holding companies. Other major source countries/territories were the United Kingdom and the United States of America, at 7.5% and 6.9% respectively.
The mainland of China and the BVI remained the most important destinations for Hong Kong's external factor income outflow in the first quarter of 2008, accounting for 29.9% and 21.7% respectively. Other major destination countries/territories included the United States of America, at 9.0%, and the Netherlands, at 8.8%.
GDP and GNP are closely related measures of economic performance. GDP is the total value of production of all resident producing units within the territory. GNP denotes the total income earned by residents of a particular territory, regardless of the place in which the economic activities generating the income are undertaken. In other words, GNP is obtained by adding to GDP factor income earned by residents from outside the territory and deducting factor income earned by non-residents within the territory.
The above EFIF figures are compiled based on data obtained from the Survey of External Claims, Liabilities and Income, supplemented by data from other sources.
Figures of GNP and EFIF from the second quarter of 2006 to the first quarter of 2008 analysed by income component are presented in Table A, while the country/territory breakdowns of external factor income inflows and external factor income outflows for the same period are presented in Tables B(1) and B(2) respectively.
Statistics on GNP and EFIF for 2007 and 2008 are preliminary figures. They are subject to revision when more data become available.
Enquiries about GNP and EFIF statistics may be directed to the Balance of Payments Branch (2) of the Census and Statistics Department at 2116 5102.
Ends/Monday, June 16, 2008
Issued at HKT 16:15