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ECONOMY | Tony Chua, Hong Kong
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Hong Kong first quarter GNP up 7%

Total factor income inflow was estimated at $228.4bn, equivalent to 50.6% of GDP, up 13.9% over a year earlier.

Hong Kong’s Gross National Product increased 7% in first quarter over a year earlier to $471.2 billion at current market prices, while the Gross Domestic Product estimated at $451.1 billion at current market prices, recorded an 8.8% rise, the Census & Statistics Department announced on Monday.

Compared with GDP, the value of GNP was larger by $20.1 billion in the first quarter, representing a net external factor income inflow of the same amount, and equivalent to 4.5% of GDP in that quarter.

After netting out the effect of price changes, GNP increased 5.4% in real terms over a year earlier. The corresponding increase in GDP in the same quarter was 7.2%.

Total factor income inflow into Hong Kong, estimated at $228.4 billion in the first quarter and equivalent to 50.6% of GDP in that quarter, increased 13.9% over a year earlier.

Total factor income outflow, estimated at $208.3 billion in the first quarter and equivalent to 46.2% of GDP of the same period, increased 19.1% over a year earlier. Taking the inflow and outflow together, a net external factor income inflow of $20.1 billion was recorded.

Within total factor income inflow, direct investment income increased 18.7% over a year earlier, mainly due to the increase in earnings of some prominent local enterprises from investment abroad.

Portfolio Investment Income decreased 1.4%, mainly attributable to the decrease in dividend income received from holdings of non-resident equity securities by resident investors. Other investment income fell 3.2%, mainly due to the decrease in interest income from other investment assets of the local banking sector.

Within total factor income outflow, direct investment income rose 19.4% over a year earlier, mainly attributable to the increase in earnings of some prominent multinational enterprises from direct investment in Hong Kong. Portfolio investment income rose 26%, mainly attributable to the increase in dividend payout to non-resident investors from resident equity securities holdings. Other investment income fell 4.4%, largely caused by increased other investment liabilities of the local banking sector.

Mainland China continued to be the largest source of Hong Kong’s external factor income inflow, accounting for 39.2%. This was followed by the British Virgin Islands, with a share of 31.8%.

Both places remained the most important destinations for external factor income outflow, accounting for 29.1% and 28.8%.

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