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Hong Kong's Gross National Product and External Factor Income Flows for the fourth quarter of 2011 and the whole year of 2011
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     Statistics on Hong Kong's Gross National Product (GNP) and External Factor Income Flows (EFIF) for the fourth quarter of 2011 and the whole year of 2011 are released today (March 15) by the Census and Statistics Department (C&SD).

     In the fourth quarter of 2011, Hong Kong's GNP increased by 7.0% over a year earlier to $511.3 billion at current market prices.  The Gross Domestic Product (GDP), estimated at $505.0 billion at current market prices in the same quarter, recorded a 6.5% increase over the same period.  Compared with GDP, the value of GNP was larger by $6.3 billion in the fourth quarter of 2011, representing a net external factor income inflow of the same amount, and equivalent to 1.2% of GDP in that quarter.

     After netting out the effect of price changes, Hong Kong's GNP increased by 3.4% in real terms in the fourth quarter of 2011 over a year earlier.  The corresponding increase in GDP in the same quarter was 3.0%.

     Total factor income inflow into Hong Kong, estimated at $264.9 billion in the fourth quarter of 2011 and equivalent to 52.4% of GDP in that quarter, increased by 1.4% over a year earlier.  Meanwhile, total factor income outflow, estimated at $258.6 billion in the fourth quarter of 2011 and equivalent to 51.2% of GDP in the same period, increased by 0.4% over a year earlier.  Taking the inflow and outflow together, a net external factor income inflow of $6.3 billion was recorded in the fourth quarter of 2011.

     Within total factor income inflow, Direct Investment Income (DII) decreased slightly by 0.7% compared with a year earlier, mainly due to the decrease in earnings of some prominent local enterprises from their investment abroad.  Portfolio Investment Income (PII) increased slightly by 0.9%, 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 72.5%, mainly due to the increase in the interest rates of the overseas banking sector.

     Within total factor income outflow, DII decreased by 2.5% compared with a year earlier, mainly attributable to the decrease in earnings of some prominent multinational enterprises from their direct investment in Hong Kong.  PII increased by 25.9%, mainly attributable to the increase in dividend payout to non-resident investors from holdings of resident equity securities.  OII increased by 64.5%, largely caused by the increase 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 fourth quarter of 2011, accounting for 43.2%.  This was followed by the British Virgin Islands (BVI), with a share of 30.9%.  Regarding external factor income outflow, the Mainland and the BVI remained the most important destinations in the fourth quarter of 2011, accounting for 29.3% and 28.3% respectively.

     For 2011 as a whole, Hong Kong's GNP increased by 10.2% over a year earlier to $1,950.7 billion at current market prices.  The difference of $56.8 billion from GDP for the same year (estimated at $1,893.9 billion) represented a net factor income inflow of the same amount and equivalent to 3.0% of GDP in the year.  The total factor income inflow was estimated at $1,019.7 billion, or 53.8% of GDP in 2011 while the corresponding outflow at $962.9 billion, or 50.8% of GDP.  After netting out the effect of price changes, Hong Kong's GNP increased by 6.3% in real terms in 2011 over 2010.

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 conducted by the C&SD, supplemented by data from other sources.

     Figures of GNP and EFIF analysed by income component from the first quarter of 2010 to the fourth quarter of 2011 are presented in Table A, while the selected major country/territory breakdowns of external factor income inflow and external factor income outflow for the same quarters are presented in Tables B(1) and B(2) respectively.

     Statistics on GNP from 2010 onwards and EFIF for 2011 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 C&SD at 2116 5102.

Ends/Thursday, March 15, 2012
Issued at HKT 16:30

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