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Statistics on Hong Kong's Gross National Product (GNP) and External Factor Income Flows (EFIF) for the third quarter of 2011 are released today (December 15) by the Census and Statistics Department (C&SD).
In the third quarter of 2011, Hong Kong's GNP increased by 9.8% over a year earlier to $493.5 billion at current market prices. The Gross Domestic Product (GDP), estimated at $487.4 billion at current market prices in the same quarter, recorded a 8.8% increase during the period. Compared with GDP, the value of GNP was larger by $6.1 billion in the third quarter of 2011, representing a net external factor income inflow of the same amount, and equivalent to 1.2% of GDP in that quarter.
After netting out the effect of price changes, Hong Kong's GNP increased by 5.2% in real terms in the third quarter of 2011 over a year earlier. The corresponding increase in GDP in the same quarter was 4.3%.
Total factor income inflow into Hong Kong, estimated at $244.7 billion in the third quarter of 2011 and equivalent to 50.2% of GDP in that quarter, increased by 8.8% over a year earlier. Meanwhile, total factor income outflow, estimated at $238.7 billion in the third quarter of 2011 and equivalent to 49.0% of GDP in the same period, increased by 6.8% over a year earlier. Taking the inflow and outflow together, a net external factor income inflow of $6.1 billion was recorded in the third quarter of 2011.
Within total factor income inflow, Direct Investment Income (DII) increased by 8.3% over a year earlier, mainly due to the increase in earnings of some prominent local enterprises from investment abroad. Portfolio Investment Income (PII) increased by 6.2%, mainly attributable to the increase in dividend income received from holdings of non-resident equity securities by resident investors. Other Investment Income (OII) increased by 37.7%, mainly due to the increase in Other Investment (OI) assets of the local banking sector.
Within total factor income outflow, DII increased by 4.1% over a year earlier, mainly attributable to the increase in earnings of some prominent multinational enterprises from direct investment in Hong Kong. PII increased by 22.0%, mainly attributable to the increase in dividend payout to non-resident investors from holdings of resident equity securities. OII increased by 33.6%, largely caused by increased OI liabilities 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 third quarter of 2011, accounting for 42.2%. This was followed by the British Virgin Islands (BVI), with a share of 27.1%. Regarding external factor income outflow, the Mainland and the BVI remained the most important destinations in the third quarter of 2011, accounting for 28.8% and 25.2% 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 from the fourth quarter of 2009 to the third quarter of 2011 analysed by income component 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 2009 onwards and EFIF for 2011 are preliminary figures. They are subject to revision when more data become available. In the light of the latest information available, annual and quarterly figures on EFIF and GNP for 2010 have been revised.
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, December 15, 2011
Issued at HKT 16:38
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