Gross Domestic Product for 3rd Quarter 2020
GDP by expenditure component for the third quarter of 2020
- In the third quarter of 2020, the Gross Domestic Product (GDP) decreased by 3.5% in real terms from a year earlier, compared with the decrease of 9.0% in the second quarter.
- On a seasonally adjusted quarter-to-quarter comparison basis, GDP increased by 2.8% in real terms in the third quarter of 2020 when compared with the second quarter.
- Analysed by major GDP component, private consumption expenditure decreased by 8.2% in real terms in the third quarter of 2020 from a year earlier, improving from the 14.2% decline in the second quarter.
- Government consumption expenditure measured in national accounts terms grew by 7.0% in real terms in the third quarter of 2020 over a year earlier, after the increase of 9.7% in the second quarter.
- Gross domestic fixed capital formation (GDFCF) decreased by 11.1% in real terms in the third quarter of 2020 from a year earlier, compared with the decrease of 21.4% in the second quarter.
- Within the total GDFCF, expenditure on machinery, equipment and intellectual property products decreased by 20.9% in real terms in the third quarter of 2020 from a year earlier, narrower than the decline of 43.6% in the second quarter.
- On the other hand, expenditure on building and construction in GDFCF dropped by 10.4% in real terms in the third quarter of 2020 from a year earlier, after the decline of 4.0% in the second quarter. Within this category, expenditure on building and construction in respect of private and public sectors decreased by 9.4% and 12.5% respectively in real terms in the third quarter of 2020.
- Over the same period, total exports of goods recorded an increase of 3.9% in real terms over a year earlier, as against the decrease of 2.2% in the second quarter. Imports of goods grew by 1.8% in real terms in the third quarter of 2020, as against the decline of 6.7% in the second quarter.
- Exports of services fell by 34.6% in real terms in the third quarter of 2020 from a year earlier, compared with the decrease of 45.6% in the second quarter. Imports of services decreased by 36.8% in real terms in the third quarter of 2020, compared with the decrease of 44.5% in the second quarter.
- The implicit price deflator of GDP, as a broad measure of overall inflation in the economy, increased by 0.6% in the third quarter of 2020 over a year earlier, compared with the increase of 0.8% in the second quarter.
- As compared with the figures published in the last quarterly report, after incorporation of the latest information available, the value of GDP in the second quarter of 2020 was slightly revised and the year-on-year rate of change of GDP in real terms remained at the decrease of 9.0%. As compared with the advance estimates released on 30 October 2020, the year-on-year rate of change of GDP in real terms for the third quarter of 2020 was revised from -3.4% to -3.5%; and the real growth on a seasonally adjusted quarter-to-quarter comparison basis was also revised from 3.0% to 2.8%.
GDP by economic activity for the second quarter of 2020
- The preliminary figures of chain volume measures of GDP by economic activity for the second quarter of 2020, which had already been released in late September 2020, were subsequently revised as more data became available.
- The revised figures showed that net output in respect of all the services activities taken together decreased by 9.0% in real terms in the second quarter of 2020 from a year earlier, virtually the same as that in the first quarter. In the second quarter of 2020, the net output of a number of services sectors continued to drop visibly from a year earlier. The COVID-19 pandemic continued to inflict severe impacts on global and local economic activities. Industries related to consumption and tourism were severely disrupted. Furthermore, the decline of transportation sector remained noticeable amid scant passenger traffic and subdued cargo flows.
- Analysed by constituent services sector and on a year-on-year comparison, net output in the import and export, wholesale and retail trades sector dropped by 18.7% in real terms in the second quarter of 2020 from a year earlier, after the decrease of 21.5% in the first quarter.
- Net output in the accommodation services (covering hotels, guesthouses, boarding houses and other establishments providing short term accommodation) and food services sector decreased by 44.5% in real terms in the second quarter of 2020 from a year earlier, after the fall of 47.6% in the first quarter.
- The decrease in the net output in the transportation, storage, postal and courier services sector enlarged further to 49.4% in real terms in the second quarter of 2020 from a year earlier, following the decline of 32.3% in the first quarter.
- Net output in the real estate, professional and business services sector decreased by 5.9% in real terms in the second quarter of 2020 from a year earlier, compared with the decline of 4.6% in the first quarter.
- Net output in the public administration, social and personal services sector dropped by 3.0% in real terms in the second quarter of 2020 from a year earlier, compared with the decrease of 3.2% in the first quarter.
- Net output in the information and communications sector increased by 0.9% in real terms in the second quarter of 2020 over a year earlier, compared with the growth of 1.6% in the first quarter.
- Net output in the financing and insurance sector increased by 3.0% in real terms in the second quarter of 2020 over a year earlier, compared with the rise of 2.7% in the first quarter.
- As for sectors other than the services sectors, net output in the local manufacturing sector dropped by 5.1% in real terms in the second quarter of 2020 from a year earlier, compared with the decrease of 4.6% in the first quarter.
- Net output in the electricity, gas and water supply, and waste management sector decreased by 12.2% in real terms in the second quarter of 2020 from a year earlier, compared with the decrease of 14.3% in the first quarter.
- Net output in the construction sector decreased by 3.5% in real terms in the second quarter of 2020 from a year earlier, after the decrease of 12.1% in the first quarter.
GNI for the second quarter of 2020
- The preliminary figures of Gross National Income (GNI) for the second quarter of 2020, which were released in mid-September 2020, were also revised accordingly based on the revised GDP estimates.
- In the second quarter of 2020, GNI decreased by 7.6% from a year earlier to $697.7 billion at current market prices, compared with the 7.3% decrease in the first quarter of 2020.
- Measured at current market prices, the value of GNI was larger than GDP by $60.8 billion in the second quarter of 2020, representing a net external primary income inflow of the same amount, and equivalent to 9.6% of GDP in that quarter.
- After netting out the effect of price changes, real GNI decreased by 8.4% in the second quarter of 2020 from a year earlier.
- Total primary income inflow into Hong Kong, estimated at $442.4 billion in the second quarter of 2020 and equivalent to 69.5% of GDP in that quarter, decreased by 7.5% from 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 decreased by 3.5%, 4.7%, 33.0% and 27.9% respectively from a year earlier.
- Total primary income outflow, estimated at $381.6 billion in the second quarter of 2020 and equivalent to 59.9% of GDP in that quarter, decreased by 8.5% from a year earlier. Regarding the major components of total primary income outflow, DII, PII and OII decreased by 6.1%, 3.5% and 34.1% respectively from a year earlier.
- Taking the inflow and outflow together, a net external primary income inflow of $60.8 billion was recorded in the second quarter of 2020, compared with the net income inflow of $16.0 billion in the first quarter of 2020.
* * * * * * *