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Statistics on Hong Kong・s Gross National Product (GNP) and External Factor Income Flows (EFIF) for the fourth quarter of 2007 and the whole year of 2007 are released today (March 14) by the Census and Statistics Department.
In the fourth quarter of 2007, Hong Kong・s GNP increased by 14.6% over a year earlier to $465.3 billion at current market prices. The Gross Domestic Product (GDP), estimated at $447.2 billion at current market prices in the same quarter, recorded a 11.7% increase during the period. Compared with GDP, the value of Hong Kong・s GNP was larger by $18.1 billion in the fourth quarter of 2007, representing a net external factor income inflow of the same amount, and equivalent to 4.1% of GDP in that quarter.
After netting out the effect of price changes, Hong Kong・s GNP increased by 9.4% in real terms in the fourth quarter of 2007 over a year earlier. This was higher than the corresponding increase of 6.7% recorded for GDP in the same quarter.
Total factor income inflow into Hong Kong, estimated at $245.4 billion in the fourth quarter of 2007 and equivalent to 54.9% of GDP in that quarter, increased markedly by 35.4% over a year earlier. At the same time, total factor income outflow, estimated at $227.3 billion in the fourth quarter of 2007 and equivalent to 50.8% of GDP of the same period, also recorded an increase of 29.5% over a year earlier. Taking the inflow and outflow together, a net external factor income inflow of $18.1 billion was recorded in the fourth quarter of 2007.
Within total factor income inflow, Direct Investment Income (DII) increased substantially by 40.6% over a year earlier, mainly due to increased earnings of some prominent local enterprises from investment abroad. Portfolio Investment Income (PII) increased by 18.1%, mainly attributable to the increase in dividend income received from holdings of non-resident shares during the period. Other Investment Income (OII) surged by 42.8% over a year earlier, mainly on account of increased interest income from offshore loans and deposits of the local banking sector, which in turn was the combined result of increases in interest rates and external assets of the local banking sector.
Within total factor income outflow, DII rose considerably by 30.8% over a year earlier, largely attributable to increased earnings of some prominent multinational enterprises from investment in Hong Kong during the period. PII decreased marginally by 0.7%, mainly due to the decrease in dividend income received from holdings of a number of resident publicly listed companies by non-resident investors. OII increased significantly by 37.2%, largely caused by increased liabilities of the local banking sector and higher interest rates.
Analysed by country/territory, the mainland of China continued to be the largest source of Hong Kong・s external factor income inflow in the fourth quarter of 2007, accounting for 28.3%. This was followed by the British Virgin Islands, with a share of 26.0%, 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 8.6% and 7.0% respectively.
The mainland of China and the British Virgin Islands were also the most important destinations for Hong Kong・s external factor income outflow in the fourth quarter of 2007, accounting for 22.9% and 20.0% respectively. Other major destination countries/territories included the United States of America, at 11.3%, and the Netherlands, at 9.1%.
For 2007 as a whole, Hong Kong・s GNP increased by 11.4% over a year earlier to $1,674.9 billion at current market prices. The difference of $62.3 billion from GDP for the same year (estimated at $1,612.6 billion) represented a net factor income inflow of the same amount and equivalent to 3.9% of GDP in the year. After netting out the effect of price changes, Hong Kong・s GNP increased by 8.4% in real terms in 2007 over 2006. The total factor income inflow was estimated at $867.1 billion, or 53.8% of GDP in 2007 while the corresponding outflow at $804.9 billion, or 49.9% of GDP.
Further Information
GDP and GNP are closely related measures of economic performance. GDP is a measure of the total value of production of all resident producing units within the economic territory of a country or territory. GNP denotes the total income earned by residents of a particular country or 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 economic territory and deducting factor income earned by non-residents within the economic 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 2006 to the fourth quarter of 2007 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 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/Friday, March 14, 2008
Issued at HKT 16:15
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