GNI outpaces GDP in Q1 on investment income inflows

Net primary income inflows outweigh stronger domestic output growth trends.

Hong Kong’s Gross National Income (GNI) continued to outpace its Gross Domestic Product (GDP) in the first quarter (Q1) of 2026, driven by net inflows of investment income, according to preliminary data released by the Census and Statistics Department (C&SD) on 16 June.

GNI grew 5.1% year on year (YoY) to $925.7b at current market prices, whilst GDP expanded 5.3% to $843.9b over the same period with the resulting gap of $81.8b equivalent to 9.7% of GDP.

On a real terms basis, GNI increased 3.9%, compared with 5.9% growth in GDP.

According to C&SD, total inflow of primary income reached $529.6b in Q1 2026, up 1.6% YoY and equivalent to 62.8% of GDP.

Total primary income outflow rose 1.4% to $447.8b, or 53.1% of GDP.

Investment income remained the main driver of cross-border flows. Direct investment income inflow increased 2.8%, supported by higher earnings from local enterprises’ overseas investments.

Portfolio investment income rose 7.4%, driven mainly by higher interest income from non-resident debt securities held by resident investors.

On the outflow side, direct investment income increased 2.5%, reflecting higher earnings of multinational firms operating in Hong Kong.

Portfolio investment income rose 29.4%, largely due to increased interest payments on resident debt securities held by non-residents.

By geography, mainland China accounted for 38.8% of Hong Kong’s total primary income inflow in Q1 2026, making it the largest source. The British Virgin Islands followed at 16.0%.

For outflows, mainland China and the British Virgin Islands remained the main destinations, accounting for 30.1% and 20.6%, respectively.

The C&SD noted that GNI measures total income earned by Hong Kong residents from economic activities, whilst GDP measures the total value of production within the economy.

GNI and primary income flow figures from Q2 2024 to Q1 2026 remain subject to revision as additional data are incorporated.