Gross Domestic Product for the 2nd quarter 2009

GDP by expenditure component for the second quarter of 2009

• In the second quarter of 2009, the Gross Domestic Product (GDP) declined by 3.8% in real terms from a year earlier, compared with the 7.8% decrease in the first quarter of 2009.
• On a seasonally adjusted quarter-to-quarter comparison basis, GDP increased by 3.3% in real terms in the second quarter of 2009. 
• Analysed by major GDP component, private consumption expenditure contracted slightly by 1.0% in real terms in the second quarter of 2009 from a year earlier, moderating notably from the 6.0% decline in the first quarter.
• Government consumption expenditure in national accounts terms increased mildly by 1.6% in real terms in the second quarter of 2009 over a year earlier, compared with the growth of 1.4% in the first quarter.
• Gross domestic fixed capital formation (GDFCF) decreased by 14.0% in real terms in the second quarter of 2009 from a year earlier, after the 13.7% decline in the first quarter.
• Within the total GDFCF, expenditure on machinery, equipment and computer software decreased by 18.0% in real terms in the second quarter of 2009 from a year earlier, notably larger than the decline of 6.6% in the first quarter.
• Expenditure on building and construction decreased by 5.9% in real terms in the second quarter of 2009 from a year earlier, compared with the 10.9% decrease in the first quarter.
• Expenditure on building and construction of the private sector decreased by 10.6% in real terms in the second quarter of 2009 while that of the public sector registered an increase of 13.9%.
• Over the same period, total exports of goods (comprising re-exports and domestic exports) decreased by 12.4% in real terms, moderating distinctly from the 22.7% decline in the first quarter of 2009. Imports of goods also decreased by 12.7% in real terms in the second quarter of 2009.
• Exports of services decreased by 5.7% in real terms in the second quarter of 2009 from a year earlier, compared with the 6.3% decrease in the first quarter. Imports of services also dropped by 5.6% in real terms in the second quarter of 2009.
• The implicit price deflator of GDP, as a broad measure of overall inflation in the economy, recorded a year-on-year increase of 1.7% in the second quarter of 2009, compared with the 0.4% marginal increase in the first quarter. 
• After incorporation of the latest information available, the year-on-year percentage change of GDP in real terms for the first quarter of 2009 was -7.8%, same as the preliminary figure published in May 2009. 

GDP by economic activity for the first quarter of 2009

• The preliminary figures of chain volume measures of GDP by economic activity for the first quarter of 2009, which were released in late June 2009, were revised as more data became available.
• The revised figures showed that net output in all the service activities taken together decreased by 7.2% in real terms in the first quarter of 2009 from a year earlier, compared with the decrease of 2.3% in the fourth quarter of 2008. 
• Analysed by constituent sector and on a year-on-year comparison, net output in the wholesale, retail and import and export trades, restaurants and hotels sector decreased sharply by 15.7% in real terms in the first quarter of 2009 from a year earlier, compared with the 2.1% drop in the fourth quarter of 2008. The fall was mainly attributable to the hard hit on merchandise exports by the sharp plunge in global demand and the acute fall-off in intra-regional exports.
• Net output in the transport, storage and communications sector decreased by 8.8% in real terms in the first quarter of 2009 from a year earlier, compared with the decrease of 4.3% in the fourth quarter of 2008. The transport and storage services plummeted along with the further setback in external trade activities.
• Net output in the financing, insurance, real estate and business services sector decreased by 6.7% in real terms in the first quarter of 2009 from a year earlier, compared with the 4.9% decrease in the fourth quarter of 2008. The decrease was mainly because the local stock prices suffered further losses, trading remained subdued while fund raising activities were drooping.
• Net output in the community, social and personal services sector increased by 0.6% in real terms in the first quarter of 2009 over a year earlier, compared with the 0.7% rise in the fourth quarter of 2008.
• Net output in the local manufacturing sector decreased by 12.2% in real terms in the first quarter of 2009 from a year earlier, compared with the decrease of 10.4% in the fourth quarter of 2008.
• Net output in the electricity, gas and water sector decreased by 1.2% in real terms in the first quarter of 2009 from a year earlier, compared with the increase of 2.2% in the fourth quarter of 2008.
• As for the construction sector, net output decreased by 7.0% in real terms in the first quarter of 2009 from a year earlier, compared with the increase of 2.8% in the fourth quarter of 2008.