GDP down 0.5% in Q3

This amounts to $722.8b, whilst GNY fell to $764.1b.

Hong Kong’s gross domestic product (GDP) recorded a 0.5% YoY decline to $722.8b in Q3 compared to a year earlier, according to data from the Census and Statistics Department (C&SD). The gross national product (GNI) also diminished 0.6% YoY to $764.1b.

Also read: GDP growth holds firm at 0.6% in Q2

The value of GNI was larger than the GDP by $41.3b during the quarter and was equivalent to 5.7% of GDP in that quarter, mainly attributed to a net inflow of investment income, noted C&SD.

GDP is a measure of the total value of production of all resident producing units of an economy in a specified period, before deducting consumption of fixed capital. Meanwhile, GNI denoted the total income earned by Hong Kong residents from engaging in various economic activities.

In contrast, the total inflow of primary income inched up 0.1% YoY to approximately $440b in Q3, compared to the same period last year. This is equivalent to 60.9% of GDP in that quarter.

Total primary income outflow, estimated at $398.7b in the third quarter and equivalent to 55.2% of GDP in that quarter, also increased by 0.3% YoY over a year earlier.

Also read: Real GDP forecast revised down to -1.3% for 2019

As for the major components of investment income inflow, direct investment income (DII) rose by 2.8% YoY over a year earlier, mainly due to the increase in earnings of some prominent local enterprises from their direct investment abroad. Conversely, portfolio investment income (PII) recorded a YoY decrease from a year earlier, mainly attributable to the decrease in dividend income received by resident investors from their holdings of non-resident equity securities.

Analysed by country/territory, mainland China continued to be the largest source of Hong Kong's total primary income inflow in the third quarter, accounting for 41.6%. This was followed by the British Virgin Islands (BVI), with a share of 21%. Regarding total primary income outflow, the BVI and the mainland of China remained the most important destinations in the third quarter of 2019, accounting for 25.4% and 24% respectively.