Gross Domestic Product for 3rd Quarter 2021
GDP by expenditure component for the third quarter of 2021
- In the third quarter of 2021, the Gross Domestic Product (GDP) increased by 5.4% in real terms over a year earlier, following the growth of 7.6% in the second quarter.
- On a seasonally adjusted quarter-to-quarter comparison basis, GDP increased by 0.1% in real terms in the third quarter of 2021 when compared with the second quarter.
- Analysed by major GDP component, private consumption expenditure increased by 7.1% in real terms in the third quarter of 2021 over a year earlier, compared with the increase of 7.2% in the second quarter.
- Government consumption expenditure measured in national accounts terms grew by 4.3% in real terms in the third quarter of 2021 over a year earlier, after the increase of 3.0% in the second quarter.
- Gross domestic fixed capital formation (GDFCF) increased by 10.8% in real terms in the third quarter of 2021 over a year earlier, compared with the 23.9% growth in the second quarter.
- Within the total GDFCF, expenditure on machinery, equipment and intellectual property products increased by 19.6% in real terms in the third quarter of 2021 over a year earlier, compared with the increase of 61.7% in the second quarter.
- On the other hand, expenditure on building and construction in GDFCF grew by 0.3% in real terms in the third quarter of 2021 over a year earlier, as against the decline of 1.0% in the second quarter. Within this category, expenditure on building and construction in respect of private and public sectors increased by 0.4% and stayed virtually flat respectively in real terms in the third quarter of 2021.
- Over the same period, total exports of goods recorded an increase of 14.2% in real terms over a year earlier, moderated from the increase of 20.5% in the second quarter. Imports of goods grew by 16.8% in real terms in the third quarter of 2021, compared with the increase of 21.4% in the second quarter.
- Exports of services rose by 4.2% in real terms in the third quarter of 2021 over a year earlier, compared with the increase of 3.0% in the second quarter. Imports of services increased by 4.5% in real terms in the third quarter of 2021, compared with the increase of 10.6% in the second quarter.
- The implicit price deflator of GDP, as a broad measure of overall inflation in the economy, increased by 0.7% in the third quarter of 2021 over a year earlier, compared with the virtually no change 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 2021 was slightly revised and the year-on-year real growth rate of GDP remained at 7.6%. As compared with the advance estimates released on 1 November 2021, the year-on-year real growth rate of GDP for the third quarter of 2021 remained at 5.4%; and the real growth on a seasonally adjusted quarter-to-quarter comparison basis also remained unchanged.
GDP by economic activity for the second quarter of 2021
- The preliminary figures of chain volume measures of GDP by economic activity for the second quarter of 2021, which had already been released in late September 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 6.6% in real terms in the second quarter of 2021 over a year earlier, compared with the 6.7% increase in the first quarter. The Hong Kong economy remained on track for recovery in the second quarter of 2021 alongside the improving global economic conditions and receding local epidemic. Import and export trade continued to record visible growth and consumption-related industries also improved further. Yet the recovery remained uneven across industries, with consumption-related economic activities still below their pre-recession levels.
- Analysed by constituent services sector, net output in the import and export, wholesale and retail trades sector increased by 15.5% in real terms in the second quarter of 2021 over a year earlier, compared with the increase of 24.0% in the first quarter.
- Net output in the financing and insurance sector increased by 6.2% in real terms in the second quarter of 2021 over a year earlier, following the 7.4% rise 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 increased by 16.8% in real terms in the second quarter of 2021 over a year earlier, as against the decrease of 6.1% in the first quarter.
- Net output in the transportation, storage, postal and courier services sector increased by 19.6% in real terms in the second quarter of 2021 over a year earlier, compared with the increase of 0.4% in the first quarter.
- Net output in the information and communications sector increased by 2.1% in real terms in the second quarter of 2021 over a year earlier, compared with the growth of 3.7% in the first quarter.
- Net output in the real estate, professional and business services sector registered an increase of 2.3% in real terms in the second quarter of 2021 over a year earlier, compared with the 1.3% growth in the first quarter.
- Net output in the public administration, social and personal services sector rose by 4.1% in real terms in the second quarter of 2021 over a year earlier, following the 2.2% increase in the first quarter.
- As for sectors other than the services sectors, net output in the local manufacturing sector increased by 5.6% in real terms in the second quarter of 2021 over a year earlier, compared with the increase of 2.6% in the first quarter.
- Net output in the electricity, gas and water supply, and waste management sector increased by 6.0% in real terms in the second quarter of 2021 over a year earlier, compared with the increase of 0.8% in the first quarter.
- Net output in the construction sector decreased by 0.5% in real terms in the second quarter of 2021 from a year earlier, after the decrease of 3.2% in the first quarter.
GNI for the second quarter of 2021
- The preliminary figures of Gross National Income (GNI) for the second quarter of 2021, which were released in mid-September 2021, were also revised accordingly based on the revised GDP estimates.
- In the second quarter of 2021, GNI increased by 10.4% over a year earlier to $762.6 billion at current market prices, compared with the 7.8% increase in the first quarter of 2021.
- Measured at current market prices, the value of GNI was larger than GDP by $84.2 billion in the second quarter of 2021, representing a net external primary income inflow of the same amount and equivalent to 12.4% of GDP in that quarter.
- After netting out the effect of price changes, real GNI increased by 11.5% in the second quarter of 2021 over a year earlier.
- Total primary income inflow into Hong Kong, estimated at $478.7 billion in the second quarter of 2021 and equivalent to 70.6% of GDP in that quarter, increased by 8.2% 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 7.5% and 23.2% respectively over a year earlier. Other investment income (OII) and income on reserve assets decreased by 43.0% and 19.0% respectively from a year earlier.
- Total primary income outflow, estimated at $394.5 billion in the second quarter of 2021 and equivalent to 58.1% of GDP in that quarter, increased by 3.4% over a year earlier. Regarding the major components of total primary income outflow, DII increased by 10.2% over a year earlier. PII and OII decreased by 7.5% and 45.6% respectively from a year earlier.
- Taking the inflow and outflow together, a net external primary income inflow of $84.2 billion was recorded in the second quarter of 2021, compared with the net income inflow of $21.5 billion in the first quarter of 2021.
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