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Statistics on Hong Kong's Gross National Product (GNP) and External Factor Income Flows (EFIF) for the first quarter of 2009 are released today (June 16) by the Census and Statistics Department.
In the first quarter of 2009, Hong Kong's GNP decreased by 9.2% over a year earlier to $388.7 billion at current market prices. The Gross Domestic Product (GDP), estimated at $380.1 billion at current market prices in the same quarter, recorded a 7.3% decrease during the period. Compared with GDP, the value of Hong Kong's GNP was larger by $8.6 billion in the first quarter of 2009, representing a net external factor income inflow of the same amount, and equivalent to 2.3% of GDP in that quarter.
After netting out the effect of price changes, Hong Kong's GNP decreased by 9.6% in real terms in the first quarter of 2009 over a year earlier, compared to the corresponding decrease of 7.8% recorded for GDP in the same quarter.
Total factor income inflow into Hong Kong, estimated at $171.2 billion in the first quarter of 2009 and equivalent to 45.0% of GDP in that quarter, decreased by 26.7% over a year earlier. Total factor income outflow, estimated at $162.6 billion in the first quarter of 2009 and equivalent to 42.8% of GDP of the same period, decreased by 24.6% over a year earlier. Taking the inflow and outflow together, a net external factor income inflow of $8.6 billion was recorded in the first quarter of 2009.
Within total factor income inflow, Direct Investment Income (DII) decreased by 17.7% over a year earlier, mainly due to the significant decrease in earnings of some prominent local enterprises from investment abroad. Portfolio Investment Income (PII) dropped by 33.8%, mainly attributable to the decrease in dividend income received from holdings of non-resident shares listed on the Stock Exchange of Hong Kong and the decrease in interest income received from holdings of non-resident debt securities by resident investors. Other Investment Income (OII) decreased by 55.8%, mainly due to the significant decrease in the interest rates of the overseas banking sector.
Within total factor income outflow, DII dropped by 20.1% over a year earlier, mainly attributable to the decrease in earnings of some prominent multinational enterprises from direct investment in Hong Kong. PII decreased by 32.8%, mainly attributable to the decrease in dividend payout to non-resident investors from holdings of resident equity securities and the decrease in interest payout to non-resident investors from holdings of resident debt securities. OII decreased by 50.1%, largely caused by the significant decrease in the interest rates of the local banking sector.
Analysed by country/territory, the mainland of China (the Mainland) continued to be the largest source of Hong Kong's external factor income inflow in the first quarter of 2009, accounting for 41.6%. This was followed by the British Virgin Islands (BVI), with a share of 26.3%, 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 States of America and the United Kingdom, at 7.9% and 4.8% respectively.
The mainland and the BVI were also the most important destinations for Hong Kong's external factor income outflow in the first quarter of 2009, accounting for 32.1% and 30.0% respectively. Other major destination countries/territories included the Netherlands, at 8.2%, and the United States of America, at 5.9%.
Further Information
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 2007 to the first quarter of 2009 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 2008 and 2009 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/Tuesday, June 16, 2009
Issued at HKT 16:30
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