Hong Kong’s second quarter GNP up 11.1%

A net external factor income inflow of $24.3bn was posted.

Hong Kong's Gross National Product increased by 11.1% in second quarter over a year earlier to $470.2 billion at current market prices, while the Gross Domestic Product, estimated at $445.9 billion at current market prices, recorded a 9.9% increase.

The Census & Statistics Department said in its report on Thursday, compared with GDP, the value of GNP was larger by $24.3 billion in the second quarter, representing a net external factor income inflow of the same amount, and equivalent to 5.5% of GDP in that quarter.

After netting out the effect of price changes, Hong Kong's GNP increased by 6.2% in real terms in the second quarter over a year earlier. The corresponding increase in GDP was 5.1%.

Total factor income inflow into Hong Kong, estimated at $281.7 billion in the second quarter and equivalent to 63.2% of GDP in that quarter, increased by 11% over a year earlier.

Total factor income outflow, estimated at $257.4 billion in the second quarter and equivalent to 57.7% of GDP for the same period, increased by 9% over a year earlier.

Taking the inflow and outflow together, a net external factor income inflow of $24.3 billion was recorded.

Within total factor income inflow, direct investment income increased by 10% over a year earlier, mainly due to the increase in earnings of some prominent local enterprises from investment abroad.

The Mainland continued to be the largest source of Hong Kong's external factor income inflow, accounting for 42.5%. This was followed by the British Virgin Islands (BVI), with a share of 26.4%.

Both places remained the most important destinations for external factor income outflow, accounting for 26% and 25.7%.