Gross national income up 1.6% to $3.02t in 2019

Hong Kong recorded a net primary income inflow of $148.2b.

Hong Kong's gross national income (GNI) rose 1.6% YoY to $3.02t at current market prices in 2019, according to data from the Census and Statistics Department (C&SD). In real terms, GNI dipped 1.1%.

The difference of $148.2b from GDP in 2019 represented a net primary income inflow and was equivalent to 5.2% of GDP in that year. The total primary income inflow was estimated at $1.67t or 58.2% of GDP, with the corresponding outflow at $1.52t or 53.1% of GDP.

In Q4, GNI dipped 0.6% YoY to $767.2b at current market prices. In real terms, GNI dropped 3.3%. With the GDP declining 1.2% to $744.4b in the quarter, the value of GNI was larger than GDP by $22.9b or 3.1% of GDP, thanks to a net inflow of investment income.

Over the same period, the total inflow of primary income climbed 0.6% YoY to $383.2b or equivalent to 51.5% of GDP. Meanwhile, total primary income outflow fell 0,7% to $360.3b or 48.4% of the GDP.

Under inflow, direct investment income (DII) rose 2% mainly due to a growth in earnings of some prominent local enterprises from their direct investment abroad. Likewise, portfolio investment income (PII) jumped 9.2% partly due to a hike in interest income for resident investors from their holdings of non-resident long-term debt securities.

Under outflow, DII climbed 1.7% mainly due to a growth earnings of some prominent multinational enterprises from their direct investment in Hong Kong. In contrast, PII dropped 0.5% as interest payout to non-resident investors from their holdings of resident short-term debt securities fell.

Mainland China remained the largest source of Hong Kong's total primary income inflow, accounting for 42.3%. This was followed by the British Virgin Islands (BVI), with a share of 22.8%. BVI and the mainland of China also remained the most important destinations of outflows, accounting for 26.7% and 24.8% respectively.