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Hong Kong's Gross National Income and external primary income flows for the fourth quarter of 2013 and the whole year of 2013
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     Preliminary statistics on Hong Kong's Gross National Income (GNI) and external primary income flows (EPIF) for the fourth quarter of 2013 and the whole year of 2013 were released today (March 14) by the Census and Statistics Department (C&SD).

     According to the preliminary statistics for the fourth quarter of 2013, Hong Kong's GNI increased by 4.6% over a year earlier to $582.3 billion at current market prices.  The Gross Domestic Product (GDP), preliminarily estimated at $581.3 billion at current market prices in the same quarter, also recorded a 4.6% increase over the same period.  Compared with GDP, the value of GNI was larger by $1.0 billion in the fourth quarter of 2013, representing a net external primary income inflow of the same amount, and equivalent to 0.2% of GDP in that quarter.

     After netting out the effect of price changes, the preliminary statistics showed that Hong Kong's GNI increased by 5.2% in real terms in the fourth quarter of 2013 over a year earlier.  The corresponding GDP in the same quarter increased by 3.0%.

     Total primary income inflow into Hong Kong, estimated at $277.7 billion in the fourth quarter of 2013 and equivalent to 47.8% of GDP in that quarter, increased by 1.9% over a year earlier.  Meanwhile, total primary income outflow, estimated at $276.7 billion in the fourth quarter of 2013 and equivalent to 47.6% of GDP in that quarter, also increased by 1.9% over a year earlier.  Taking the inflow and outflow together, a net external primary income inflow of $1.0 billion was recorded in the fourth quarter of 2013.

     As for the major components of total primary income inflow, direct investment income (DII) increased by 0.8% 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 18.6%, mainly attributable to the increases in dividend income received from holdings of non-resident funds as well as interest income received from holdings of non-resident short-term debt securities by resident investors.  Other investment income (OII) decreased by 1.3%, largely caused by the decrease in interest income from offshore loans of the local banking sector.  Income on reserve assets also decreased by 20.7%, 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 2.0% 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 10.1%, mainly attributable to the increase in dividend payout to non-resident investors from their holdings of resident equity securities.  OII decreased by 15.4%, largely caused by the decrease in the interest rates 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 fourth quarter of 2013, accounting for 44.6%.  This was followed by the British Virgin Islands (BVI), with a share of 28.2%.  Regarding total external primary income outflow, the mainland of China and the BVI remained the most important destinations in the fourth quarter of 2013, accounting for 29.1% and 27.6% respectively.

     For 2013 as a whole, the preliminary statistics showed that Hong Kong's GNI increased by 4.7% over a year earlier to $2,164.7 billion at current market prices.  The difference of $42.2 billion from GDP for the same year (estimated at $2,122.5 billion) represented a net external primary income inflow of the same amount and equivalent to 2.0% of GDP in that year.  The total primary income inflow was estimated at $1,127.7 billion, or 53.1% of GDP in 2013 while the corresponding outflow at $1,085.5 billion, or 51.1% of GDP in 2013.  After netting out the effect of price changes, Hong Kong's GNI increased by 4.4% in real terms in 2013 over 2012.

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 first quarter of 2012 to the fourth 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 2012 onwards and EPIF for 2013 are subject to revision when more data become available.

     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, March 14, 2014
Issued at HKT 16:30

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