Gross Domestic Product for the 4th quarter 2009 and the whole year of 2009

GDP by expenditure component for the fourth quarter of 2009 and the whole year of 2009

• In the fourth quarter of 2009, the Gross Domestic Product (GDP) increased by 2.6% in real terms over a year earlier, in contrast to the 2.2% decrease in the third quarter. For 2009 as a whole, GDP contracted by 2.7% in real terms compared with 2008.
• On a seasonally adjusted quarter-to-quarter comparison basis, GDP increased by 2.3% in real terms in the fourth quarter of 2009.  
• Analysed by major GDP component, private consumption expenditure (PCE) grew by 4.9% in real terms in the fourth quarter of 2009 over a year earlier, compared with the marginal increase of 0.5% in the third quarter. For 2009 as a whole, PCE decreased marginally by 0.3% in real terms compared with 2008.
• Government consumption expenditure (GCE) in national accounts terms increased by 1.7% in real terms in the fourth quarter of 2009 over a year earlier, compared with the 2.9% increase in the third quarter. For 2009 as a whole, GCE increased by 2.0% in real terms over 2008.
• Gross domestic fixed capital formation (GDFCF) increased by 14.7% in real terms in the fourth quarter of 2009, distinctly faster than the 2.6% increase in the third quarter. For 2009 as a whole, GDFCF registered a mild decline of 2.2% in real terms compared with 2008.
• Within the total GDFCF, expenditure on machinery, equipment and computer software also increased significantly by 16.2% in real terms in the fourth quarter of 2009 over a year earlier, in contrast to the 3.5% decline in the third quarter.
• Expenditure on building and construction increased by 2.9% in real terms in the fourth quarter of 2009 over a year earlier, compared with an increase of 6.0% in the third quarter.
• Expenditure on building and construction of the private sector decreased by 1.7% in real terms in the fourth quarter of 2009 while that of the public sector registered a strong growth of 18.7%.
• Over the same period, total exports of goods (comprising re-exports and domestic exports) decreased by 2.6% in real terms, moderating from the 13.2% decline in the third quarter of 2009. Imports of goods increased by 3.1% in real terms in the fourth quarter of 2009. For 2009 as a whole, total exports and imports of goods recorded decreases of 12.6% and 9.7% in real terms respectively from 2008.    
• Exports of services grew by 7.7% in real terms in the fourth quarter of 2009 over a year earlier, compared with the marginal decline of 0.5% in the third quarter. Imports of services also increased by 2.4% in real terms in the fourth quarter of 2009. For 2009 as a whole, exports and imports of services decreased by 0.7% and 4.0% in real terms respectively from 2008.
• The implicit price deflator (IPD) of GDP, as a broad measure of overall inflation in the economy, increased by 0.2% in the fourth quarter of 2009 over a year earlier, as against the 0.1% decrease in the third quarter. For 2009 as a whole, the IPD of GDP also increased by 0.2%.    
• After incorporation of the latest information available, the real growth rate of GDP for 2008 was revised downwards from 2.4% to 2.1%. The real growth rates of GDP for the first and third quarters of 2009 were revised upwards from -7.8% and -2.4% to -7.5% and -2.2% respectively, while that of the second quarter was revised slightly downwards from -3.6% to -3.7%.  

GDP by economic activity for the third quarter of 2009 

• The preliminary figures of chain volume measures of GDP by economic activity for the third quarter of 2009, which were released in late December 2009, were revised as more data became available.
• The revised figures showed that net output in all the service activities taken together decreased by 2.1% in real terms in the third quarter of 2009 from a year earlier, compared with the 3.6% decline in the second quarter.  
• 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 by 8.8% in real terms in the third quarter of 2009 from a year earlier, smaller than the decline of 11.2% in the second quarter. The moderation in the year-on-year rate of decline in the third quarter partly reflected the improvement in local consumer sentiments. 
• Net output in the transport, storage and communications sector fell by 6.9% in real terms in the third quarter of 2009 from a year earlier, compared with the decrease of 8.8% in the second quarter. This sector remained subdue as transportation services were still dragged by the sluggish trade flows.
• Net output in the financing, insurance, real estate and business services sector increased by 4.3% in real terms in the third quarter of 2009 over a year earlier, compared to a marginal increase of 0.3% in the second quarter. The improvement was attributable to the further revival in financial market activities and increased activity in the property market.
• Net output in the community, social and personal services sector increased by 1.0% in real terms in the third quarter of 2009 over a year earlier, compared with the 1.5% rise in the second quarter.
• Net output in the local manufacturing sector decreased by 8.3% in real terms in the third quarter of 2009 from a year earlier, compared with the decline of 10.8% in the second quarter. 
• Net output in the electricity, gas and water sector recorded an increase of 5.3% in real terms in the third quarter of 2009 over a year earlier, compared with the 2.4% increase in the second quarter.
• As for the construction sector, net output increased by 8.1% in real terms in the third quarter of 2009 from a year earlier, compared with the decrease of 1.0% in the second quarter.

GDP by economic activity at current prices for 2008

• The GDP by economic activity statistics 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 revised figures of GDP by economic activity at current prices for 2008 showed that the wholesale, retail and import and export trades, restaurants and hotels sector accounted for the largest share (28.2%) of the GDP, followed by the financing, insurance, real estate and business services sector (26.7%), and the community, social and personal services sector (17.9%).