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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 2013 were released today (December 13) by the Census and Statistics Department (C&SD).
According to the preliminary statistics for the third quarter of 2013, Hong Kong's GNI increased by 4.6% over a year earlier to $550.1 billion at current market prices. The Gross Domestic Product (GDP), preliminarily estimated at $549.7 billion at current market prices in the same quarter, recorded a 4.7% increase over the same period. Compared with GDP, the value of GNI was larger by $0.4 billion in the third quarter of 2013, representing a net external primary income inflow of the same amount, and equivalent to 0.1% of GDP in that quarter.
After netting out the effect of price changes, the preliminary statistics showed that Hong Kong's GNI increased by 5.4% in real terms in the third quarter of 2013 over a year earlier. The corresponding GDP in the same quarter increased by 2.9%.
Total primary income inflow into Hong Kong, estimated at $285.3 billion in the third quarter of 2013 and equivalent to 51.9% of GDP in that quarter, increased by 7.6% over a year earlier. Meanwhile, total primary income outflow, estimated at $284.9 billion in the third quarter of 2013 and equivalent to 51.8% of GDP in that quarter, increased by 7.8% over a year earlier. Taking the inflow and outflow together, a net external primary income inflow of $0.4 billion was recorded in the third quarter of 2013.
As for the major components of total primary income inflow, direct investment income (DII) increased by 6.7% 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 by 20.9%, mainly attributable to the increase in dividend income received from holdings of non-resident equity securities by resident investors. Other investment income (OII) decreased by 6.5%, largely caused by the decrease in interest income from offshore loans of the local banking sector. Income on reserve assets also decreased by 12.9%, as a result of the decrease in investment earnings from foreign currency reserves.
Regarding the major components of total primary income outflow, DII increased by 7.1% 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 16.2%, mainly attributable to the increase in dividend payout to non-resident investors from their holdings of resident equity securities. OII increased by 0.8%, largely caused by the increase in the liabilities of the local banking sector due to other investment.
Analysed by country/territory, the mainland of China continued to be the largest source of Hong Kong's external primary income inflow in the third quarter of 2013, accounting for 44.9%. This was followed by the British Virgin Islands (BVI), with a share of 26.7%. Regarding external primary income outflow, the mainland of China and the BVI remained the most important destinations in the third quarter of 2013, accounting for 27.9% and 26.1% 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 2011 to the third quarter of 2013 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 2011 onwards and EPIF from 2013 onwards 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 2012 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/Friday, December 13, 2013
Issued at HKT 16:30
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