Gross Domestic Product for the 4th quarter 2013

GDP by expenditure component for the fourth quarter of 2013 and the whole year of 2013

• In the fourth quarter of 2013, the Gross Domestic Product (GDP) increased by 3.0% in real terms over a year earlier, compared with the 2.8% increase in the third quarter of 2013. For 2013 as a whole, GDP increased by 2.9% in real terms over 2012.
• On a seasonally adjusted quarter-to-quarter comparison basis, GDP increased by 1.1% in real terms in the fourth quarter of 2013 over the third quarter.
• Analysed by major GDP component, private consumption expenditure (PCE) continued to increase by 3.2% in real terms in the fourth quarter of 2013 over a year earlier, after the 2.4% growth in the third quarter. For 2013 as a whole, PCE increased by 4.2% in real terms over 2012.
• Government consumption expenditure (GCE) measured in national accounts terms increased by 3.2% in real terms in the fourth quarter of 2013 over a year earlier, compared with the growth of 2.3% in the third quarter. For 2013 as a whole, GCE increased by 2.7% in real terms over 2012.
• Gross domestic fixed capital formation (GDFCF) increased by 5.3% in real terms in the fourth quarter of 2013 over a year earlier, after the 2.8% growth in the third quarter. For 2013 as a whole, GDFCF increased by 3.3% in real terms over 2012.
• Within the total GDFCF, expenditure on machinery, equipment and intellectual property products increased significantly by 17.2% in real terms in the fourth quarter of 2013 over a year earlier, compared with the 7.3% increase in the third quarter.
• On the other hand, expenditure on building and construction in GDFCF decreased by 4.1% in real terms in the fourth quarter of 2013 from a year earlier, as against the increase of 3.2% in the third quarter. Within this category, expenditure on building and construction in respect of the private sector decreased by 3.4% in real terms in the fourth quarter of 2013 while that of the public sector decreased by 5.3%.
• Over the same period, total exports of goods (comprising re-exports and domestic exports) increased by 5.8% in real terms over a year earlier, compared with the increase of 6.2% in the third quarter of 2013. Likewise, imports of goods increased by 6.5% in real terms in the fourth quarter of 2013, compared with the 6.8% increase in the third quarter. For 2013 as a whole, total exports of goods and imports of goods recorded increases of 6.7% and 7.6% in real terms respectively over 2012.
• Exports of services increased by 4.9% in real terms in the fourth quarter of 2013 over a year earlier, compared with the 5.5% increase in the third quarter. Imports of services increased by 3.7% in real terms in the fourth quarter of 2013, after the 2.7% increase in the third quarter. For 2013 as a whole, exports of services and imports of services recorded increases of 5.8% and 1.5% in real terms respectively over 2012.
• The implicit price deflator (IPD) of GDP, as a broad measure of overall inflation in the economy, increased by 1.6% in the fourth quarter of 2013 over a year earlier, compared with the 1.5% increase in the third quarter. For 2013 as a whole, the IPD of GDP increased by 1.2% over 2012.
• After incorporation of the latest information available, the year-on-year growth of GDP in real terms for the whole year of 2011 was revised downwards from 4.9% to 4.8% while that for the whole year of 2012 remained at 1.5%. For 2013, the year-on-year real growth rates of GDP for the first quarter remained at 2.9% while those for the second and third quarters were slightly revised to 3.1% and 2.8% respectively.
• After the implementation of the System of National Accounts 2008 (2008 SNA)) in the GDP framework in September 2012, a new set of trade in goods (TIG) and trade in services (TIS) statistics, compiled based on the change of ownership principle in recording goods sent abroad for processing and merchanting as stipulated in the 2008 SNA, has now become available. The new statistics are presented in Tables 9 and 10 as supplementary tables. For details regarding the background and concepts of the change of ownership principle in the 2008 SNA, please refer to the Special Report on Gross Domestic Product published in September 2012. The TIG and TIS statistics presented in other parts of the report are compiled based on the 2008 SNA standards, other than the change of ownership principle. This special arrangement aims at providing a transition period to allow data users to have more time to adapt to the presentation of the new series of TIG and TIS statistics in GDP. Data users should note that the overall GDP level and growth rate remain unchanged after adopting the new TIG and TIS statistics in accordance with the change of ownership principle.

GDP by economic activity for the third quarter of 2013

• The preliminary figures of chain volume measures of GDP by economic activity for the third quarter of 2013, which had already been released in late December 2013, 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 2.5% in real terms in the third quarter of 2013 over a year earlier, compared with the 3.8% growth in the second quarter.
• Analysed by constituent services sector and on a year-on-year comparison, net output in the import and export, wholesale and retail trades sector increased by 1.9% in real terms in the third quarter of 2013 over a year earlier, moderating from the increase of 4.8% in the second quarter. The modest growth in this sector was mainly attributable to the sluggish performance in the external trade of Hong Kong amid the weak global economic conditions.
• Net output in the financing and insurance sector grew by 6.4% in real terms in the third quarter of 2013 over a year earlier, following the growth of 7.9% in the second quarter. The continued solid growth of this sector in the third quarter of 2013 was partly due to the low base of comparison over a year earlier, and also reflected the improvement in financial activities during the quarter.
• Net output in the accommodation services (covered hotels, guesthouses, boarding houses and other establishments providing short term accommodation) and food services sector increased by 3.4% in real terms in the third quarter of 2013 over a year earlier, compared with the 4.3% growth in the second quarter.
• Net output in the transportation, storage, postal and courier services sector recorded an increase of 2.4% in real terms in the third quarter of 2013 over a year earlier, after the growth of 3.0% in the second quarter.
• Net output in the information and communications sector rose by 4.6% in real terms in the third quarter of 2013 over a year earlier, faster than the 2.6% increase in the second quarter.
• Net output in the real estate, professional and business services sector edged down by 0.2% in real terms in the third quarter of 2013 from a year earlier, compared with the slight decrease of 0.3% in the second quarter.
• Net output in the public administration, social and personal services sector grew by 2.3% in real terms in the third quarter of 2013 over a year earlier, compared with the 3.8% rise in the second quarter.
• As for sectors other than the services sectors, net output in the local manufacturing sector dropped by 0.9% in real terms in the third quarter of 2013 from a year earlier, as against the slight increase of 0.3% in the second quarter.
• Net output in the electricity, gas and water supply, and waste management sector decreased by 0.4% in real terms in the third quarter of 2013 from a year earlier, compared with the 2.5% decrease in the second quarter.
• Net output in the construction sector increased by 8.8% in real terms in the third quarter of 2013 over a year earlier, faster than the 2.6% growth in the second quarter.

GDP by economic activity at current prices for 2012

• 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 revised figures of GDP by economic activity at current prices for 2012 showed that the import and export, wholesale and retail trades sector accounted for the largest share (25.4%) of the GDP, followed by the public administration, social and personal services sector (16.8%), and the financing and insurance sector (15.9%).

GNI for the third quarter of 2013

• The preliminary figures of Gross National Income (GNI) for the third quarter of 2013, which were released in mid-December 2013, were also revised accordingly based on the revised GDP estimates.
• In the third quarter of 2013, GNI increased by 4.3% over a year earlier to $547.0 billion at current market prices, compared with the 4.7% increase in the second quarter of 2013.
• Compared with GDP, the value of GNI was larger by $0.4 billion in the third quarter of 2013, representing a net external primary income inflow of the same amount, and equivalent to 0.1% of GDP in that quarter.
• After netting out the effect of price changes, real GNI increased by 5.0% in the third quarter of 2013 over a year earlier.
• Total primary income inflow into Hong Kong, estimated at $285.3 billion in the third quarter of 2013 and equivalent to 52.2% of GDP in that quarter, increased by 7.6% over a year earlier. As for the major components of total primary income inflow, direct investment income (DII) and portfolio investment income (PII) increased by 6.7% and 20.9% respectively over a year earlier. Other investment income (OII) and income on reserve assets (RA) decreased by 6.5% and 12.9% respectively compared with a year earlier.
• Total primary income outflow, estimated at $284.9 billion in the third quarter of 2013 and equivalent to 52.1% of GDP in that quarter, increased by 7.8% over a year earlier. Regarding the major components of total primary income outflow, DII, PII and OII increased by 7.1%, 16.2% and 0.8% respectively over a year earlier.
• Taking the inflow and outflow together, a net external primary income inflow of $0.4 billion was recorded in the third quarter of 2013, compared with the net income inflow of $28.2 billion in the second quarter of 2013.