The Census and Statistics Department (C&SD) released today (December 17) the preliminary statistics on Hong Kong's Gross National Income (GNI) and related figures for the third quarter of 2018.

     Hong Kong's GNI, which denotes the total income earned by Hong Kong residents from engaging in various economic activities, increased notably by 8.7% in the third quarter of 2018 over a year earlier to $767.7 billion at current market prices. The Gross Domestic Product (GDP), preliminarily estimated at $726.0 billion at current market prices in the same quarter, recorded a 6.7% increase over the same period. The value of GNI was larger than GDP by $41.7 billion in the third quarter of 2018, mainly attributable to a net inflow of investment income.

     After netting out the effect of price changes over the same period, Hong Kong's GNI increased by 5.0% in real terms in the third quarter of 2018 over a year earlier. The corresponding GDP in the same quarter increased by 2.9% in real terms.

     Hong Kong's total inflow of primary income, which mainly comprises investment income, estimated at $432.8 billion in the third quarter of 2018 and equivalent to 59.6% of GDP in that quarter, recorded a significant increase of 15.2% over a year earlier. Meanwhile, total primary income outflow, estimated at $391.1 billion in the third quarter of 2018 and equivalent to 53.9% of GDP in that quarter, also increased substantially by 11.8% over a year earlier.

     As for the major components of investment income inflow, direct investment income (DII) increased considerably by 8.9% 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) recorded a notable increase of 14.7% over a year earlier, mainly attributable to the increase in dividend income received by resident investors from their holdings of non-resident equity securities and the increase in interest income received by resident investors from their holdings of non-resident short-term debt securities.

     Regarding the major components of investment income outflow, DII increased by 6.1% over a year earlier, mainly due to the increase in earnings of some prominent multinational enterprises from their direct investment in Hong Kong. PII increased significantly by 19.1%, mainly attributable to the increase in dividend payout to non-resident investors from their holdings of resident equity securities.

     Analysed by country/territory, the mainland of China continued to be the largest source of Hong Kong's total primary income inflow in the third quarter of 2018, accounting for 40.9%. This was followed by the British Virgin Islands (BVI), with a share of 20.4%. Regarding total primary income outflow, the mainland of China and the BVI remained the most important destinations in the third quarter of 2018, accounting for 24.8% and 24.0% respectively.

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.

     Figures of primary income inflow and outflow 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 primary income flows analysed by income component from the fourth quarter of 2016 to the third quarter of 2018 are presented in Table A, while selected major country/territory breakdowns of primary income inflow and outflow for the same quarters are presented in Tables B(1) and B(2) respectively.

     Statistics on GDP and GNI from 2016 onwards and primary income flows for 2018 are subject to revision when more data become available. In the light of the latest information available, annual and quarterly figures of GNI and primary income flows for 2017 have been revised, such that the corresponding figures presented in Tables A and B are revised figures.
 
     Enquiries about GNI and related statistics may be directed to the Balance of Payments Branch (2) of the C&SD at 3903 7017.

Ends/Monday, December 17, 2018
Issued at HKT 16:30

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