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Statistics on Hong Kong's Gross National Product (GNP) and External Factor Income Flows (EFIF) for the first quarter of 2011 are released today (June 13) by the Census and Statistics Department.
In the first quarter of 2011, Hong Kong's GNP increased by 7.0% over a year earlier to $471.2 billion at current market prices. The Gross Domestic Product (GDP), estimated at $451.1 billion at current market prices in the same quarter, recorded a 8.8% increase during the period. Compared with GDP, the value of GNP was larger by $20.1 billion in the first quarter of 2011, representing a net external factor income inflow of the same amount, and equivalent to 4.5% of GDP in that quarter.
After netting out the effect of price changes, Hong Kong's GNP increased by 5.4% in real terms in the first quarter of 2011 over a year earlier. The corresponding increase in GDP in the same quarter was 7.2%.
Total factor income inflow into Hong Kong, estimated at $228.4 billion in the first quarter of 2011 and equivalent to 50.6% of GDP in that quarter, increased by 13.9% over a year earlier. Meanwhile, total factor income outflow, estimated at $208.3 billion in the first quarter of 2011 and equivalent to 46.2% of GDP of the same period, increased by 19.1% over a year earlier. Taking the inflow and outflow together, a net external factor income inflow of $20.1 billion was recorded in the first quarter of 2011.
Within total factor income inflow, Direct Investment Income (DII) increased by 18.7% over a year earlier, mainly due to the increase in earnings of some prominent local enterprises from investment abroad. Portfolio Investment Income (PII) decreased slightly by 1.4%, mainly attributable to the decrease in dividend income received from holdings of non-resident equity securities by resident investors. Other Investment Income (OII) decreased by 3.2%, mainly due to the decrease in interest income from Other Investment (OI) assets of the local banking sector.
Within total factor income outflow, DII increased by 19.4% over a year earlier, mainly attributable to the increase in earnings of some prominent multinational enterprises from direct investment in Hong Kong. PII increased by 26.0%, mainly attributable to the increase in dividend payout to non-resident investors from holdings of resident equity securities. OII increased by 4.4%, 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 first quarter of 2011, accounting for 39.2%. This was followed by the British Virgin Islands (BVI), with a share of 31.8%. Regarding external factor income outflow, the Mainland and the BVI remained the most important destinations in the first quarter of 2011, accounting for 29.1% and 28.8% respectively.
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 2009 to the first quarter of 2011 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 from 2009 onwards and EFIF from 2010 onwards 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, June 13, 2011
Issued at HKT 16:36
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