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Preliminary statistics on Hong Kong's Gross National Income (GNI) and external primary income flows (EPIF) for the third quarter of 2014 were released today (December 15) by the Census and Statistics Department (C&SD).
According to the preliminary statistics for the third quarter of 2014, Hong Kong's GNI increased by 7.2% over a year earlier to $588.2 billion at current market prices. The Gross Domestic Product (GDP), preliminarily estimated at $576.5 billion at current market prices in the same quarter, recorded a 5.3% increase over the same period. Measured at current market prices, the value of GNI was larger than GDP by $11.7 billion in the third quarter of 2014, representing a net external primary income inflow of the same amount, and equivalent to 2.0% of GDP in that quarter.
After netting out the effect of price changes, the preliminary statistics showed that Hong Kong's GNI increased by 2.9% in real terms in the third quarter of 2014 over a year earlier. The corresponding GDP in the same quarter increased by 2.7%.
Total primary income inflow into Hong Kong, estimated at $325.1 billion in the third quarter of 2014 and equivalent to 56.4% of GDP in that quarter, increased by 12.4% over a year earlier. Meanwhile, total primary income outflow, estimated at $313.4 billion in the third quarter of 2014 and equivalent to 54.4% of GDP in that quarter, increased by 8.7% over a year earlier. Taking the inflow and outflow together, a net external primary income inflow of $11.7 billion was recorded in the third quarter of 2014.
As for the major components of total primary income inflow, direct investment income (DII) increased by 2.5% over a year earlier, mainly due to the increase in earnings of some prominent local enterprises from their direct investment abroad. Portfolio investment income (PII) increased significantly by 61.3% over a year earlier, 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 24.7%, largely caused by the increase in interest income from external assets of the local banking sector. Income on reserve assets increased by 3.8%, as a result of the increase in investment earnings from foreign currency reserves.
Regarding the major components of total primary income outflow, DII increased by 8.6% over a year earlier, mainly attributable to the increase in earnings of some prominent multinational enterprises from their direct investment in Hong Kong. PII increased by 7.1%, mainly attributable to the increase in dividend payout to non-resident investors from their holdings of resident equity securities. OII also increased by 17.5%, largely caused by the increase in external liabilities of the local banking sector.
Analysed by country/territory, the mainland of China continued to be the largest source of Hong Kong's total external primary income inflow in the third quarter of 2014, accounting for 46.9%. This was followed by the British Virgin Islands (BVI), with a share of 24.4%. Regarding total external primary income outflow, the mainland of China and the BVI remained the most important destinations in the third quarter of 2014, accounting for 25.9% and 25.2% respectively.
Further information
GDP and GNI are closely related indicators for measuring economic performance. GDP is a measure of the total value of production of all resident producing units of an economy. GNI denotes the total income earned by residents of an economy from engaging in various economic activities, irrespective of whether the economic activities are carried out within the economic territory of the economy or outside. In other words, GNI is obtained by adding to GDP the primary income earned by residents from outside the economic territory and deducting primary income earned by non-residents from within the economic territory. Primary income comprises investment income and compensation of employees.
Figures of EPIF presented above are compiled based on data obtained from the Survey of External Claims, Liabilities and Income conducted quarterly by the C&SD, supplemented by data from other sources.
Figures of GNI and EPIF analysed by income component from the fourth quarter of 2012 to the third quarter of 2014 are presented in Table A, while selected major country/territory breakdowns of external primary income inflow and external primary income outflow for the same quarters are presented in Tables B(1) and B(2) respectively.
Statistics on GDP and GNI from 2012 onwards and EPIF for 2014 are subject to revision when more data become available. In the light of the latest information available, annual and quarterly figures of GNI and EPIF for 2013 have been revised, such that the corresponding figures presented in Tables A and B are revised figures.
Enquiries about GNI and EPIF statistics may be directed to the Balance of Payments Branch (2) of the C&SD at 2116 5102.
Ends/Monday, December 15, 2014
Issued at HKT 16:30
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