**********************************************************
Statistics on Hong Kong's Gross National Product (GNP) and External Factor Income Flows (EFIF) for the fourth quarter of 2010 and the whole year of 2010 are released today (March 14) by the Census and Statistics Department.
In the fourth quarter of 2010, Hong Kong's GNP increased by 6.9% over a year earlier to $477.2 billion at current market prices. The Gross Domestic Product (GDP), estimated at $477.7 billion at current market prices in the same quarter, recorded a 8.1% increase during the period. Compared with GDP, the value of GNP was smaller by $0.5 billion in the fourth quarter of 2010, representing a net external factor income outflow of the same amount, and equivalent to 0.1% of GDP in that quarter.
After netting out the effect of price changes, Hong Kong's GNP increased by 5.0% in real terms in the fourth quarter of 2010 over a year earlier. The corresponding increase in GDP in the same quarter was 6.2%.
Total factor income inflow into Hong Kong, estimated at $227.4 billion in the fourth quarter of 2010 and equivalent to 47.6% of GDP in that quarter, increased by 10.7% over a year earlier. Meanwhile, total factor income outflow, estimated at $227.9 billion in the fourth quarter of 2010 and equivalent to 47.7% of GDP of the same period, increased by 13.3% over a year earlier. Taking the inflow and outflow together, a net external factor income outflow of $0.5 billion was recorded in the fourth quarter of 2010.
Within total factor income inflow, Direct Investment Income (DII) increased by 12.0% over a year earlier, mainly due to the increase in earnings of some prominent local enterprises from investment abroad. Portfolio Investment Income (PII) increased by 6.0%, mainly attributable to the increase in dividend income received from holdings of non-resident equity securities by resident investors. Other Investment Income (OII) increased by 5.9%, mainly due to the increase in OI assets of the local banking sector.
Within total factor income outflow, DII increased by 14.7% over a year earlier, mainly attributable to the increase in earnings of some prominent multinational enterprises from direct investment in Hong Kong. PII decreased slightly by 2.3%, mainly attributable to the decrease in dividend payout to non-resident investors from holdings of resident equity securities. OII increased by 4.7%, largely caused by increased OI liabilities 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 fourth quarter of 2010, accounting for 38.9%. This was followed by the British Virgin Islands (BVI), with a share of 32.5%. Regarding external factor income outflow, the Mainland and the BVI remained the most important destinations in the fourth quarter of 2010, accounting for 31.1% and 26.8% respectively.
For 2010 as a whole, Hong Kong's GNP increased by 7.2% over a year earlier to $1,784.7 billion at current market prices. The difference of $36.6 billion from GDP for the same year (estimated at $1,748.1 billion) represented a net factor income inflow of the same amount and equivalent to 2.1% of GDP in the year. After netting out the effect of price changes, Hong Kong's GNP increased by 6.2% in real terms in 2010 over 2009. The total factor income inflow was estimated at $905.4 billion, or 51.8% of GDP in 2010 while the corresponding outflow at $868.9 billion, or 49.7% of GDP.
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 first quarter of 2009 to the fourth quarter of 2010 analysed by income component are presented in Table A, while the selected major 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 2010 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, March 14, 2011
Issued at HKT 16:32
NNNN