Gross Domestic Product for the 3rd quarter 2017
GDP by expenditure component for the third quarter of 2017
- In the third quarter of 2017, the Gross Domestic Product (GDP) increased by 3.6% in real terms over a year earlier, compared with the 3.9% increase in the second quarter.
- On a seasonally adjusted quarter-to-quarter comparison basis, GDP increased by 0.5% in real terms in the third quarter of 2017 when compared with the second quarter.
- Analysed by major GDP component, private consumption expenditure continued to increase by 6.7% in real terms in the third quarter of 2017 over a year earlier, after the 5.4% growth in the second quarter.
- Government consumption expenditure measured in national accounts terms increased by 4.1% in real terms in the third quarter of 2017 over a year earlier, compared with the growth of 3.2% in the second quarter.
- Gross domestic fixed capital formation (GDFCF) decreased by 1.7% in real terms in the third quarter of 2017 from a year earlier, as against the increase of 7.2% in the second quarter.
- Within the total GDFCF, expenditure on machinery, equipment and intellectual property products decreased by 6.0% in real terms in the third quarter of 2017 from a year earlier, as against the increase of 4.7% in the second quarter.
- On the other hand, expenditure on building and construction in GDFCF increased by 4.1% in real terms in the third quarter of 2017 over a year earlier, compared with the increase of 2.4% in the second quarter. Within this category, expenditure on building and construction in respect of the private sector increased by 0.5% in real terms in the third quarter of 2017 while that of the public sector by 12.3%.
- Over the same period, total exports of goods increased by 5.5% in real terms over a year earlier, same as that in the second quarter. Imports of goods increased by 6.1% in real terms in the third quarter of 2017, also same as that in the second quarter.
- Exports of services increased by 3.7% in real terms in the third quarter of 2017 over a year earlier, compared with the 2.6% increase in the second quarter. Imports of services increased by 1.5% in real terms in the third quarter of 2017, compared with the 3.7% increase in the second quarter.
- The implicit price deflator of GDP, as a broad measure of overall inflation in the economy, increased by 3.2% in the third quarter of 2017 over a year earlier, compared with the 3.3% increase in the second quarter.
- After incorporation of the latest information available, the year-on-year growth rate of GDP in real terms recorded in the second quarter of 2017 was revised upwards from 3.8% to 3.9%. Accordingly, on a seasonally adjusted quarter-to-quarter comparison basis, the magnitude of increase in GDP was also revised from 1.0% to 1.1% in real terms in the second quarter of 2017.
GDP by economic activity for the second quarter of 2017
- The preliminary figures of chain volume measures of GDP by economic activity for the second quarter of 2017, which had already been released in late September 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 3.1% in real terms in the second quarter of 2017 over a year earlier, compared with the 3.5% increase in the first quarter of 2017.
- Analysed by constituent services sector and on a year-on-year comparison, net output in the import and export, wholesale and retail trades sector rose by 3.5% in real terms in the second quarter of 2017 over a year earlier, compared with the 3.9% growth in the first quarter. The growth in this sector was mainly underpinned by the reviving regional trade flows during the quarter.
- Net output in the financing and insurance sector grew by 4.9% in real terms in the second quarter of 2017 over a year earlier, compared with the 5.2% growth in the first quarter. Stock trading activities were generally active and fund-raising activities showed some pick-up during the quarter. These led to a continuous growth of net output in this sector.
- Net output in the accommodation services (covering hotels, guesthouses, boarding houses and other establishments providing short term accommodation) and food services sector increased by 1.2% in real terms in the second quarter of 2017 over a year earlier, compared with the growth of 1.6% in the first quarter.
- Net output in the transportation, storage, postal and courier services sector increased by 4.8% in real terms in the second quarter of 2017 over a year earlier, similar to the growth of 4.7% in the first quarter.
- Net output in the information and communications sector registered an increase of 3.4% in real terms in the second quarter of 2017 over a year earlier, compared with the 3.8% increase in the first quarter.
- Net output in the real estate, professional and business services sector increased by 2.1% in real terms in the second quarter of 2017 over a year earlier, compared with the growth of 4.4% in the first quarter.
- Net output in the public administration, social and personal services sector recorded an increase of 2.6% in real terms in the second quarter of 2017 over a year earlier, similar to the 2.5% rise in the first quarter.
- As for sectors other than the services sectors, net output in the local manufacturing sector rose by 0.4% in real terms in the second quarter of 2017 over a year earlier, following the 0.2% growth in the first quarter.
- Net output in the electricity, gas and water supply, and waste management sector registered a decrease of 0.8% in real terms in the second quarter of 2017 from a year earlier, after the decrease of 3.3% in the first quarter.
- Net output in the construction sector increased by 3.4% in real terms in the second quarter of 2017 over a year earlier, compared with the growth of 8.6% in the first quarter.
GDP by economic activity at current prices for 2016
- 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 2016 showed that the import and export, wholesale and retail trades sector accounted for the largest share (21.6%) of the GDP, followed by the public administration, social and personal services sector (18.2%), and the financing and insurance sector (17.7%).
GNI for the second quarter of 2017
- The preliminary figures of Gross National Income (GNI) for the second quarter of 2017, which were released in mid-September 2017, were also revised accordingly based on the revised GDP estimates.
- In the second quarter of 2017, GNI increased by 8.8% over a year earlier to $679.5 billion at current market prices, compared with the 7.8% increase in the first quarter of 2017.
- Measured at current market prices, the value of GNI was larger than GDP by $50.4 billion in the second quarter of 2017, representing a net external primary income inflow of the same amount, and equivalent to 8.0% of GDP in that quarter.
- After netting out the effect of price changes, real GNI increased by 5.4% in the second quarter of 2017 over a year earlier.
- Total primary income inflow into Hong Kong, estimated at $391.4 billion in the second quarter of 2017 and equivalent to 62.2% of GDP in that quarter, increased by 6.8% 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 2.7%, 4.4%, 84.3% and 33.0% respectively over a year earlier.
- Total primary income outflow, estimated at $341.0 billion in the second quarter of 2017 and equivalent to 54.2% of GDP in that quarter, increased by 4.0% over a year earlier. Regarding the major components of total primary income outflow, DII and OII increased by 2.6% and 76.9% respectively over a year earlier. PII decreased by 7.2% from a year earlier.
- Taking the inflow and outflow together, a net external primary income inflow of $50.4 billion was recorded in the second quarter of 2017, compared with the net income inflow of $19.8 billion in the first quarter of 2017.
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