Gross Domestic Product for 2nd Quarter 2021
GDP by expenditure component for the second quarter of 2021
- In the second quarter of 2021, the Gross Domestic Product (GDP) increased by 7.6% in real terms over a year earlier, compared with the increase of 8.0% in the first quarter.
- On a seasonally adjusted quarter-to-quarter comparison basis, GDP decreased by 0.9% in real terms in the second quarter of 2021 when compared with the first quarter.
- Analysed by major GDP component, private consumption expenditure increased by 6.8% in real terms in the second quarter of 2021 over a year earlier, compared with the increase of 2.1% in the first quarter.
- Government consumption expenditure measured in national accounts terms grew by 2.8% in real terms in the second quarter of 2021 over a year earlier, after the increase of 7.0% in the first quarter.
- Gross domestic fixed capital formation (GDFCF) increased by 23.8% in real terms in the second quarter of 2021 over a year earlier, much higher than the 4.8% growth in the first quarter.
- Within the total GDFCF, expenditure on machinery, equipment and intellectual property products increased significantly by 61.7% in real terms in the second quarter of 2021 over a year earlier, compared with the increase of 3.3% in the first quarter.
- On the other hand, expenditure on building and construction in GDFCF dropped by 1.1% in real terms in the second quarter of 2021 from a year earlier, after the decline of 4.3% in the first quarter. Within this category, expenditure on building and construction in respect of private and public sectors decreased by 6.8% and increased by 8.8% respectively in real terms in the second quarter of 2021.
- Over the same period, total exports of goods recorded an increase of 20.2% in real terms over a year earlier, compared with the increase of 30.1% in the first quarter. Imports of goods grew by 21.3% in real terms in the second quarter of 2021, compared with the increase of 22.9% in the first quarter.
- Exports of services rose by 2.6% in real terms in the second quarter of 2021 over a year earlier, as against the decrease of 7.3% in the first quarter. Imports of services increased by 7.6% in real terms in the second quarter of 2021, as against the decrease of 12.0% in the first quarter.
- The implicit price deflator of GDP, as a broad measure of overall inflation in the economy, decreased by 0.2% in the second quarter of 2021 from a year earlier, compared with the decrease of 0.8% in the first quarter.
- As compared with the figures published in the last quarterly report, after incorporation of the latest information available, the year-on-year growth rate of GDP in real terms for the first quarter of 2021 was revised from 7.9% to 8.0%. As compared with the advance estimates released on 30 July 2021, the year-on-year growth rate of GDP in real terms for the second quarter of 2021 was revised from 7.5% to 7.6%; and the rate of change in real terms on a seasonally adjusted quarter-to-quarter comparison basis was also revised from -1.0% to -0.9%.
GDP by economic activity for the first quarter of 2021
- The preliminary figures of chain volume measures of GDP by economic activity for the first quarter of 2021, which had already been released in late June 2021, 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 6.7% in real terms in the first quarter of 2021 over a year earlier, as against the 3.8% decrease in the fourth quarter of 2020. The Hong Kong economy saw a visible recovery in the first quarter of 2021, yet the pace of recovery was uneven across industries and overall economic activity remained below the pre-recession level. Specifically, the import and export, wholesale and retail trades sector recorded strong growth. However, the threat of COVID-19, social distancing requirements and travel restrictions continued to weigh on certain economic segments.
- Analysed by constituent services sector, net output in the import and export, wholesale and retail trades sector increased by 24.0% in real terms in the first quarter of 2021 over a year earlier, as against the decrease of 6.4% in the fourth quarter of 2020.
- Net output in the financing and insurance sector increased by 7.4% in real terms in the first quarter of 2021 over a year earlier, following the 4.8% rise in the fourth quarter of 2020.
- Net output in the transportation, storage, postal and courier services sector increased by 0.4% in real terms in the first quarter of 2021 over a year earlier, as against the decline of 35.2% in the fourth quarter of 2020.
- Net output in the information and communications sector increased by 3.7% in real terms in the first quarter of 2021 over a year earlier, compared with the growth of 2.3% in the fourth quarter of 2020.
- Net output in the real estate, professional and business services sector increased by 1.3% in real terms in the first quarter of 2021 over a year earlier, as against the decline of 3.7% in the fourth quarter of 2020.
- Net output in the public administration, social and personal services sector rose by 2.2% in real terms in the first quarter of 2021 over a year earlier, as against the 1.6% decrease in the fourth quarter of 2020.
- Net output in the accommodation services (covering hotels, guesthouses, boarding houses and other establishments providing short term accommodation) and food services sector decreased by 6.1% in real terms in the first quarter of 2021 from a year earlier, after the decrease of 32.9% in the fourth quarter of 2020.
- As for sectors other than the services sectors, net output in the local manufacturing sector increased by 2.6% in real terms in the first quarter of 2021 over a year earlier, as against the decrease of 6.1% in the fourth quarter of 2020.
- Net output in the electricity, gas and water supply, and waste management sector increased by 0.8% in real terms in the first quarter of 2021 over a year earlier, as against the decrease of 11.9% in the fourth quarter of 2020.
- Net output in the construction sector decreased by 3.2% in real terms in the first quarter of 2021 from a year earlier, after the decrease of 1.4% in the fourth quarter of 2020.
GNI for the first quarter of 2021
- The preliminary figures of Gross National Income (GNI) for the first quarter of 2021, which were released in mid-June 2021, were also revised accordingly based on the revised GDP estimates.
- In the first quarter of 2021, GNI increased by 7.8% over a year earlier to $724.5 billion at current market prices, compared with the 3.7% decrease in the fourth quarter of 2020.
- Measured at current market prices, the value of GNI was larger than GDP by $21.5 billion in the first quarter of 2021, representing a net external primary income inflow of the same amount and equivalent to 3.1% of GDP in that quarter.
- After netting out the effect of price changes, real GNI increased by 9.4% in the first quarter of 2021 over a year earlier.
- Total primary income inflow into Hong Kong, estimated at $336.3 billion in the first quarter of 2021 and equivalent to 47.8% of GDP in that quarter, decreased by 2.8% from a year earlier. As for the major components of total primary income inflow, direct investment income (DII) and portfolio investment income (PII) increased by 4.7% and 9.5% respectively over a year earlier. Other investment income (OII) and income on reserve assets decreased by 53.6% and 39.1% respectively from a year earlier.
- Total primary income outflow, estimated at $314.8 billion in the first quarter of 2021 and equivalent to 44.8% of GDP in that quarter, decreased by 4.6% from a year earlier. Regarding the major components of total primary income outflow, DII increased by 2.1% over a year earlier. PII and OII decreased by 8.1% and 55.2% respectively from a year earlier.
- Taking the inflow and outflow together, a net external primary income inflow of $21.5 billion was recorded in the first quarter of 2021, compared with the net income inflow of $26.8 billion in the fourth quarter of 2020.
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