*******************************************************
Statistics on Hong Kong's Gross National Product (GNP) and External Factor Income Flows (EFIF) for the first quarter of 2012 were released today (June 14) by the Census and Statistics Department (C&SD).
In the first quarter of 2012, Hong Kong's GNP edged up by 0.1% over a year earlier to $472.1 billion at current market prices. The Gross Domestic Product (GDP), estimated at $466.1 billion at current market prices in the same quarter, recorded a 3.2% increase over the same period. Compared with GDP, the value of GNP was larger by $6.0 billion in the first quarter of 2012, representing a net external factor income inflow of the same amount, and equivalent to 1.3% of GDP in that quarter.
After netting out the effect of price changes, Hong Kong's GNP decreased by 2.6% in real terms in the first quarter of 2012 compared with a year earlier. The corresponding GDP in the same quarter increased by 0.4%.
Total factor income inflow into Hong Kong, estimated at $239.9 billion in the first quarter of 2012 and equivalent to 51.5% of GDP in that quarter, increased by 5.0% over a year earlier. Meanwhile, total factor income outflow, estimated at $233.9 billion in the first quarter of 2012 and equivalent to 50.2% of GDP in the same period, increased by 12.3% over a year earlier. Taking the inflow and outflow together, a net external factor income inflow of $6.0 billion was recorded in the first quarter of 2012.
Within total factor income inflow, Direct Investment Income (DII) increased by 7.3% compared with a year earlier, mainly due to the increase in earnings of some prominent local enterprises from their investment abroad. Portfolio Investment Income (PII) decreased by 10.1%, mainly attributable to the decreases in dividend income received from holdings of non-resident equity securities as well as interest income received from holdings of non-resident long-term debt securities by resident investors. Other Investment Income (OII) increased by 27.2%, mainly due to the increase in the interest rates of the overseas banking sector.
Within total factor income outflow, DII increased by 12.2% compared with 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 7.0%, mainly attributable to the increase in interest payout to non-resident investors from their holdings of resident long-term debt securities. OII increased by 20.9%, largely caused by the increase in the interest rates 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 2012, accounting for 41.7%. This was followed by the British Virgin Islands (BVI), with a share of 30.5%. Regarding external factor income outflow, the BVI and the Mainland remained the most important destinations in the first quarter of 2012, accounting for 30.5% and 29.3% 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 conducted by the C&SD, supplemented by data from other sources.
Figures of GNP and EFIF analysed by income component from the second quarter of 2010 to the first quarter of 2012 are presented in Table A, while the selected major country/territory breakdowns of external factor income inflow and external factor income outflow for the same quarters are presented in Tables B(1) and B(2) respectively.
Statistics on GNP from 2010 onwards and EFIF from 2011 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 C&SD at 2116 5102.
Ends/Thursday, June 14, 2012
Issued at HKT 16:30
NNNN
