Gross Domestic Product for the 1st quarter 2017
GDP by expenditure component for the first quarter of 2017
- In the first quarter of 2017, the Gross Domestic Product (GDP) increased by 4.3% in real terms over a year earlier, compared with the 3.2% increase in the fourth quarter of 2016.
- On a seasonally adjusted quarter-to-quarter comparison basis, GDP increased by 0.7% in real terms in the first quarter of 2017 when compared with the fourth quarter of 2016.
- Analysed by major GDP component, private consumption expenditure continued to increase by 3.7% in real terms in the first quarter of 2017 over a year earlier, after the 3.6% growth in the fourth quarter of 2016.
- Government consumption expenditure measured in national accounts terms increased by 3.7% in real terms in the first quarter of 2017 over a year earlier, compared with the growth of 3.4% in the fourth quarter of 2016.
- Gross domestic fixed capital formation (GDFCF) increased by 6.4% in real terms in the first quarter of 2017 over a year earlier, compared with the 5.6% increase in the fourth quarter of 2016.
- Within the total GDFCF, expenditure on machinery, equipment and intellectual property products decreased by 8.9% in real terms in the first quarter of 2017 from a year earlier, compared with the decrease of 4.2% in the fourth quarter of 2016.
- On the other hand, expenditure on building and construction in GDFCF increased by 9.6% in real terms in the first quarter of 2017 over a year earlier, compared with the increase of 7.5% in the fourth quarter of 2016. Within this category, expenditure on building and construction in respect of the private sector increased by 5.3% in real terms in the first quarter of 2017 while that of the public sector by 18.0%.
- Over the same period, total exports of goods increased by 9.2% in real terms over a year earlier, compared with the increase of 5.1% in the fourth quarter of 2016. Imports of goods increased by 9.9% in real terms in the first quarter of 2017, compared with the 5.6% increase in the fourth quarter of 2016.
- Exports of services increased by 2.6% in real terms in the first quarter of 2017 over a year earlier, compared with the 1.2% increase in the fourth quarter of 2016. Imports of services increased by 0.9% in real terms in the first quarter of 2017, compared with the 2.0% increase in the fourth quarter of 2016.
- The implicit price deflator of GDP, as a broad measure of overall inflation in the economy, increased by 1.9% in the first quarter of 2017 over a year earlier, compared with the 1.8% increase in the fourth quarter of 2016.
- The reference year for the chain volume measures of GDP and its components has been revised from 2014 to 2015 starting from this issue of report. Re-referencing affects the levels, but not the rates of change, of the chain volume measures. Apart from re-referencing, the volume estimates for 2016, which were previously valued at 2014 prices, have also been revalued at 2015 prices. This rebasing of the volume measures affects the real growth rates of the annual and quarterly GDP for 2016. These re-referencing and rebasing processes are annual updating exercises following the introduction of the annually re-weighted chain linking approach in compiling the volume measures of GDP.
- After incorporation of the latest information available and rebasing of the volume estimates for 2016, the year-on-year growth rate of GDP in real terms for the whole year of 2016 was revised upwards from 1.9% to 2.0%. The year-on-year real growth rates of GDP for the second and fourth quarters were revised upwards from 1.7% and 3.1% to 1.8% and 3.2% respectively, while those for the first and third quarters remained unchanged.
GDP by economic activity for the fourth quarter of 2016 and the whole year of 2016
- The preliminary figures of chain volume measures of GDP by economic activity for the fourth quarter of 2016 and the whole year of 2016, which had already been released in late March 2017, were subsequently revised as more data became available
- The revised figures showed that net output in respect of all the services activities taken together increased by 2.5% in real terms in the fourth quarter of 2016 over a year earlier, compared with the 2.3% rise in the third quarter. For 2016 as a whole, the net output saw an increase of 2.3% in real terms for all services sectors taken together.
- Analysed by constituent services sector and on a year-on-year comparison, net output in the import and export, wholesale and retail trades sector increased by 1.7% in real terms in the fourth quarter of 2016 over a year earlier, compared with the growth of 0.8% in the third quarter. For 2016 as a whole, net output in this sector recorded an increase of 0.4% in real terms, as against the decrease of 1.1% in 2015. This sector showed some pick-up in 2016 along with the gradual improvement of external trade.
- Net output in the financing and insurance sector grew by 4.8% in real terms in the fourth quarter of 2016 over a year earlier, similar to the increase of 4.7% in the third quarter. For 2016 as a whole, net output in this sector increased by 4.7% in real terms, slower than the 6.1% increase in 2015. Stock trading and fund raising activities moderated somewhat in 2016, resulting in a smaller growth compared to the preceding year.
- Net output in the accommodation services (covering hotels, guesthouses, boarding houses and other establishments providing short term accommodation) and food services sector rose by 0.2% in real terms in the fourth quarter of 2016 over a year earlier, similar to the growth of 0.1% in the third quarter. For 2016 as a whole, net output in this sector registered a marginal growth of 0.1% in real terms.
- Net output in the transportation, storage, postal and courier services sector increased by 3.8% in real terms in the fourth quarter of 2016 over a year earlier, compared with the growth of 3.5% in the third quarter. For 2016 as a whole, net output in this sector grew by 3.3% in real terms.
- Net output in the information and communications sector grew by 3.3% in real terms in the fourth quarter of 2016 over a year earlier, after the increase of 3.7% in the third quarter. For 2016 as a whole, net output in this sector rose by 3.7% in real terms.
- Net output in the real estate, professional and business services sector increased by 3.5% in real terms in the fourth quarter of 2016 over a year earlier, compared with the growth of 3.2% in the third quarter. For 2016 as a whole, net output in this sector recorded an increase of 3.0% in real terms
- Net output in the public administration, social and personal services sector increased by 2.3% in real terms in the fourth quarter of 2016 over a year earlier, compared with the growth of 2.5% in the third quarter. For 2016 as a whole, net output in this sector increased by 2.7% in real terms.
- As for sectors other than the services sectors, net output in the local manufacturing sector dropped by 1.0% in real terms in the fourth quarter of 2016 from a year earlier, following the decrease of 0.1% in the third quarter. For 2016 as a whole, net output in this sector dropped by 0.4% in real terms.
- Net output in the electricity, gas and water supply, and waste management sector registered a decrease of 1.5% in real terms in the fourth quarter of 2016 from a year earlier, as against the growth of 0.6% in the third quarter. For 2016 as a whole, net output in this sector recorded an increase of 0.3% in real terms.
- Net output in the construction sector increased by 7.6% in real terms in the fourth quarter of 2016 over a year earlier, compared with the growth of 3.0% in the third quarter. For 2016 as a whole, net output in this sector increased by 2.6% in real terms.
GNI for the fourth quarter of 2016 and the whole year of 2016
- The preliminary figures of Gross National Income (GNI) for the fourth quarter of 2016 and the whole year of 2016, which were released in mid-March 2017, were also revised accordingly based on the revised GDP estimates.
- In the fourth quarter of 2016, GNI increased by 7.6% over a year earlier to $698.0 billion at current market prices, compared with the 5.3% increase in the third quarter of 2016.
- Measured at current market prices, the value of GNI was larger than GDP by $19.4 billion in the fourth quarter of 2016, representing a net external primary income inflow of the same amount, and equivalent to 2.9% of GDP in that quarter.
- After netting out the effect of price changes, real GNI increased by 5.6% in the fourth quarter of 2016 over a year earlier.
- Total primary income inflow into Hong Kong, estimated at $310.4 billion in the fourth quarter of 2016 and equivalent to 45.7% of GDP in that quarter, increased by 13.3% over a year earlier. As for the major components of total primary income inflow, direct investment income (DII), portfolio investment income (PII), other investment income (OII) and income on reserve assets increased by 12.7%, 11.1%, 21.3% and 31.0% respectively over a year earlier.
- Total primary income outflow, estimated at $291.0 billion in the fourth quarter of 2016 and equivalent to 42.9% of GDP in that quarter, increased by 7.3% over a year earlier. Regarding the major components of total primary income outflow, DII, PII and OII increased by 6.5%, 9.6% and 20.7% respectively over a year earlier.
- Taking the inflow and outflow together, a net external primary income inflow of $19.4 billion was recorded in the fourth quarter of 2016, compared with the net income inflow of $15.3 billion in the third quarter of 2016.
- For 2016 as a whole, GNI increased by 5.4% over a year earlier to $2,575.1 billion at current market prices. The difference of $84.1 billion from GDP for the same year represented a net external primary income inflow of the same amount and equivalent to 3.4% of GDP in that year. The total primary income inflow was estimated at $1,264.1 billion, or 50.7% of GDP in 2016 while the corresponding outflow at $1,180.0 billion, or 47.4% of GDP in 2016. After netting out the effect of price changes, GNI increased by 4.0% in real terms in 2016 over 2015.
* * * * * * *