Gross Domestic Product for the 3rd quarter 2016
GDP by expenditure component for the third quarter of 2016
- In the third quarter of 2016, the Gross Domestic Product (GDP) increased by 1.9% in real terms over a year earlier, compared with the 1.7% increase in the second quarter of 2016.
- On a seasonally adjusted quarter-to-quarter comparison basis, GDP increased by 0.6% in real terms in the third quarter of 2016 when compared with the second quarter of 2016.
- Analysed by major GDP component, private consumption expenditure increased by 1.2% in real terms in the third quarter of 2016 over a year earlier, compared with the 0.5% growth in the second quarter.
- Government consumption expenditure measured in national accounts terms increased by 3.3% in real terms in the third quarter of 2016 over a year earlier, compared with the growth of 3.5% in the second quarter.
- Gross domestic fixed capital formation (GDFCF) increased by 6.0% in real terms in the third quarter of 2016 over a year earlier, as against the 5.0% decrease in the second quarter.
- Within the total GDFCF, expenditure on machinery, equipment and intellectual property products increased by 6.1% in real terms in the third quarter of 2016 over a year earlier, as against the 11.2% decrease in the second quarter.
- On the other hand, expenditure on building and construction in GDFCF increased by 3.4% in real terms in the third quarter of 2016 over a year earlier, compared with the increase of 3.5% in the second quarter. Within this category, expenditure on building and construction in respect of the private sector increased by 5.2% in real terms in the third quarter of 2016 while that of the public sector registered a decline of 0.2%.
- Over the same period, total exports of goods (comprising re-exports and domestic exports) increased by 1.9% in real terms over a year earlier, compared with the increase of 2.0% in the second quarter of 2016. Imports of goods increased by 2.4% in real terms in the third quarter of 2016, compared with the increase of 0.2% in the second quarter.
- Exports of services decreased by 1.8% in real terms in the third quarter of 2016 from a year earlier, compared with the decrease of 4.6% in the second quarter. Imports of services increased by 1.7% in real terms in the third quarter of 2016, compared with the 1.6% increase in the second quarter.
- The implicit price deflator of GDP, as a broad measure of overall inflation in the economy, increased by 1.5% in the third quarter of 2016 over a year earlier, compared with the 2.1% increase in the second quarter.
- After incorporation of the latest information available, while the value of GDP was slightly revised, the year-on-year growth rate of GDP in real terms recorded in the second quarter of 2016 remained unchanged. On a seasonally adjusted quarter-to-quarter comparison basis, the magnitude of increase in GDP was revised from 1.6% to 1.5% in real terms in the second quarter of 2016.
GDP by economic activity for the second quarter of 2016
- The preliminary figures of chain volume measures of GDP by economic activity for the second quarter of 2016, which had already been released in late September 2016, 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 2.6% in real terms in the second quarter of 2016 over a year earlier, compared with the 1.5% rise in the first quarter of 2016.
- Analysed by constituent services sector and on a year-on-year comparison, net output in the import and export, wholesale and retail trades sector recorded a marginal increase of 0.5% in real terms in the second quarter of 2016 over a year earlier, as against the decline of 2.1% in the first quarter. The growth in this sector was mainly underpinned by the pick-up in merchandise trade.
- Net output in the financing and insurance sector rose by 4.6% in real terms in the second quarter of 2016 over a year earlier, slower than the growth of 5.5% in the first quarter. The local stock market remained rather volatile in the second quarter. Stock trading activities quietened down and fund-raising activities were subdued. These led to a narrower growth of net output in this sector during the quarter.
- Net output in the accommodation services (covering hotels, guesthouses, boarding houses and other establishments providing short term accommodation) and food services sector rose by 1.2% in real terms in the second quarter of 2016 over a year earlier, as against the decline of 0.7% in the first quarter.
- Net output in the transportation, storage, postal and courier services sector rose by 3.2% in real terms in the second quarter of 2016 over a year earlier, following the growth of 2.8% in the first quarter.
- Net output in the information and communications sector grew by 4.0% in real terms in the second quarter of 2016 over a year earlier, compared with the 3.3% growth in the first quarter.
- Net output in the real estate, professional and business services sector increased by 3.4% in real terms in the second quarter of 2016 over a year earlier, faster than the 1.1% growth in the first quarter.
- Net output in the public administration, social and personal services sector continued to increase by 3.3% in real terms in the second quarter of 2016 over a year earlier, after the 2.6% rise in the first quarter.
- As for sectors other than the services sectors, net output in the local manufacturing sector dropped by 0.4% in real terms in the second quarter of 2016 from a year earlier, after the decrease of 0.3% in the first quarter.
- Net output in the electricity, gas and water supply, and waste management sector registered a marginal increase of 0.4% in real terms in the second quarter of 2016 over a year earlier, compared with the growth of 2.0% in the first quarter.
- Net output in the construction sector rose by 2.7% in real terms in the second quarter of 2016 over a year earlier, as against the decrease of 1.4% in the first quarter.
GDP by economic activity at current prices for 2015
- Statistics on GDP by economic activity at current prices, which are compiled mainly based on data collected from the annual economic surveys, are useful for analysis of the contribution of different economic activities to the total GDP.
- The preliminary figures of GDP by economic activity at current prices for 2015 showed that the import and export, wholesale and retail trades sector accounted for the largest share (22.7%) of the GDP, followed by the financing and insurance sector (17.6%), and the public administration, social and personal services sector (17.4%).
GNI for the second quarter of 2016
- The preliminary figures of Gross National Income (GNI) for the second quarter of 2016, which were released in mid-September 2016, were also revised accordingly based on the revised GDP estimates.
- In the second quarter of 2016, GNI increased by 5.1% over a year earlier to $625.2 billion at current market prices, compared with the 4.0% increase in the first quarter of 2016.
- Measured at current market prices, the value of GNI was larger than GDP by $38.4 billion in the second quarter of 2016, representing a net external primary income inflow of the same amount, and equivalent to 6.5% of GDP in that quarter.
- After netting out the effect of price changes, real GNI increased by 3.6% in the second quarter of 2016 over a year earlier.
- Total primary income inflow into Hong Kong, estimated at $366.3 billion in the second quarter of 2016 and equivalent to 62.4% of GDP in that quarter, decreased by 3.1% from a year earlier. As for the major components of total primary income inflow, direct investment income (DII) and other investment income (OII) decreased by 7.3% and 20.1% respectively from a year earlier. Portfolio investment income (PII) and income on reserve assets increased by 7.9% and 15.6% respectively over a year earlier.
- Total primary income outflow, estimated at $327.9 billion in the second quarter of 2016 and equivalent to 55.9% of GDP in that quarter, decreased by 6.1% from a year earlier. Regarding the major components of total primary income outflow, DII and PII decreased by 7.0% and 3.2% respectively from a year earlier. OII increased by 1.1% over a year earlier.
- Taking the inflow and outflow together, a net external primary income inflow of $38.4 billion was recorded in the second quarter of 2016, compared with the net income inflow of $10.9 billion in the first quarter of 2016.
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