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The Census and Statistics Department (C&SD) today (September 11) released the revised Gross Domestic Product (GDP) series subsequent to a technical exercise to incorporate the latest international statistical standards of the United Nations' System of National Accounts 2008 (2008 SNA) in the GDP compilation framework of Hong Kong. The 2008 SNA is the latest version of the international statistical manual on the compilation of national accounts statistics.
The 2012 round of revision to GDP statistics is the ninth of its kind since 1980. The current revision aims at implementing the latest international statistical standards given in the 2008 SNA that are relevant to Hong Kong. These mainly include (i) adoption of the change of ownership principle in recording goods sent abroad for processing and merchanting, (ii) capitalisation of research and development expenditure, (iii) estimating the output of financial intermediation services indirectly measured using the reference rate method, (iv) recording the value of employee stock options in compensation of employees, and (v) adoption of new classification and enhanced estimation methods for relevant categories of trade in services statistics.
In addition, the C&SD has taken the opportunity to incorporate new data sources and enhanced estimation methods into the GDP compilation framework where applicable. In particular, the method underlying the estimation of the output of life insurance services has been enhanced on this occasion.
It is a standard practice that such statistical developments entail revision to the entire data series of GDP. In order to maintain data comparability, backcasting of historical series incorporating the new standards and enhanced methods has been made for GDP and its components.
Taking account of all the enhancements made to the GDP framework, the level of the GDP at current market prices was revised upwards by around 2% in 2001 - 2011 (Table 1). The upward revision was mainly attributable to (i) capitalisation of research and development expenditure, and (ii) enhanced estimation method of the output of life insurance services.
As the impact of the revision on the absolute level of GDP was broadly similar from one year to another, the impact on the overall growth rate of GDP was relatively minor. Revisions to the annual growth rates of GDP in nominal and real terms were mostly within +/-0.4 and +/-0.2 of a percentage point respectively in recent years (Table 2). The revised data series of GDP and its components are available at the website of the C&SD (www.censtatd.gov.hk/hkstat/sub/sp250.jsp).
A Government spokesman remarked that it is an established practice of Hong Kong and economies worldwide to conduct technical revision exercises for enhancing national accounts statistics once every several years. The current revision enables Hong Kong's GDP figures to align closely with the latest international standards and better reflect the economic situation of Hong Kong.
A publication "Special Report on Gross Domestic Product - September 2012", which describes in detail the concepts, methods and results of the revision exercise, is now available. The publication can be downloaded free of charge at the website of the C&SD (www.censtatd.gov.hk/hkstat/sub/sp250.jsp).
For enquiries about this revision exercise, please contact the National Income Branch (1) of the C&SD at telephone no. 2582 5077 or e-mail address gdp-e@censtatd.gov.hk.
Ends/Tuesday, September 11, 2012
Issued at HKT 16:30
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