Hong Kong's Gross National Income and external primary income flows for fourth quarter of 2015 and whole year of 2015
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     The Census and Statistics Department (C&SD) released today (March 15) the preliminary statistics on Hong Kong's Gross National Income (GNI) and external primary income flows (EPIF) for the fourth quarter of 2015 and the whole year of 2015.

     Hong Kong's GNI in the fourth quarter of 2015 increased by 2.0% over a year earlier to $648.2 billion at current market prices. The Gross Domestic Product (GDP), preliminarily estimated at $646.2 billion at current market prices in the same quarter, recorded a 5.0% increase over the same period. Measured at current market prices, the value of GNI was larger than GDP by $2.0 billion in the fourth quarter of 2015, representing a net external primary income inflow of the same amount, and equivalent to 0.3% of GDP in that quarter.

     After netting out the effect of price changes over the same period, Hong Kong's GNI increased by 0.5% in real terms in the fourth quarter of 2015 over a year earlier. The corresponding GDP in the same quarter increased by 1.9% in real terms.

     Total primary income inflow into Hong Kong, estimated at $278.5 billion in the fourth quarter of 2015 and equivalent to 43.1% of GDP in that quarter, decreased by 7.1% from a year earlier. Meanwhile, total primary income outflow, estimated at $276.4 billion in the fourth quarter of 2015 and equivalent to 42.8% of GDP in that quarter, decreased by 1.2% from a year earlier. Taking the inflow and outflow together, a net external primary income inflow of $2.0 billion was recorded in the fourth quarter of 2015.

     As for the major components of total primary income inflow, direct investment income (DII) decreased by 9.4% from a year earlier, mainly due to the decrease in earnings of some prominent local enterprises from their direct investment abroad. Portfolio investment income (PII) increased by 10.3% over a year earlier, mainly attributable to the increase in interest income received by resident investors from holdings of non-resident long-term debt securities. Other investment income (OII) decreased by 15.8%, largely caused by the decrease in interest income from external assets of the local banking sector. Income on reserve assets increased by 0.5%, as a result of the increase in investment earnings from foreign currency reserves.

     Regarding the major components of total primary income outflow, DII decreased by 2.4% from a year earlier, mainly due to the decrease in earnings of some prominent multinational enterprises from their direct investment in Hong Kong. PII increased by 7.0%, mainly attributable to the increase in dividend payout to non-resident investors from their holdings of resident equity securities. OII increased by 10.2%, largely caused by the increase in the liabilities of the local non-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 2015, accounting for 46.3%. This was followed by the British Virgin Islands (BVI), with a share of 26.6%. Regarding total external primary income outflow, the BVI and the mainland of China remained the most important destinations in the fourth quarter of 2015, accounting for 27.6% and 24.7% respectively.

     For 2015 as a whole, Hong Kong's GNI increased by 6.0% over a year earlier to $2,442.0 billion at current market prices. The difference of $39.5 billion from GDP for the same year (estimated at $2,402.5 billion) represented a net external primary income inflow of the same amount and equivalent to 1.6% of GDP in that year. The total primary income inflow was estimated at $1,271.9 billion, or 52.9% of GDP in 2015 while the corresponding outflow at $1,232.4 billion, or 51.3% of GDP in 2015. After netting out the effect of price changes, Hong Kong's GNI increased by 3.9% in real terms in 2015 over 2014.

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 2014 to the fourth quarter of 2015 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 2014 onwards and EPIF for 2015 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 3903 7017.

Ends/Tuesday, March 15, 2016
Issued at HKT 16:32

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