Gross Domestic Product for 4th Quarter and the whole year of 2021
GDP by expenditure component for the fourth quarter and the whole year of 2021
- In the fourth quarter of 2021, the Gross Domestic Product (GDP) increased by 4.8% in real terms over a year earlier, following the growth of 5.5% in the third quarter. For 2021 as a whole, GDP increased by 6.4% in real terms over 2020.
- On a seasonally adjusted quarter-to-quarter comparison basis, GDP increased by 0.2% in real terms in the fourth quarter of 2021 when compared with the third quarter.
- Analysed by major GDP component, private consumption expenditure (PCE) increased by 5.8% in real terms in the fourth quarter of 2021 over a year earlier, compared with the increase of 6.8% in the third quarter. For 2021 as a whole, PCE increased by 5.6% in real terms over 2020.
- Government consumption expenditure (GCE) measured in national accounts terms grew by 4.1% in real terms in the fourth quarter of 2021 over a year earlier, after the increase of 5.0% in the third quarter. For 2021 as a whole, GCE increased by 4.6% in real terms over 2020.
- Gross domestic fixed capital formation (GDFCF) increased marginally by 0.1% in real terms in the fourth quarter of 2021 over a year earlier, compared with the 13.1% growth in the third quarter. For 2021 as a whole, GDFCF increased by 10.1% in real terms over 2020.
- Within the total GDFCF, expenditure on machinery, equipment and intellectual property products decreased by 2.6% in real terms in the fourth quarter of 2021 from a year earlier, as against the increase of 22.5% in the third quarter.
- On the other hand, expenditure on building and construction in GDFCF grew by 2.1% in real terms in the fourth quarter of 2021 over a year earlier, compared with the increase of 2.0% in the third quarter. Within this category, expenditure on building and construction in respect of private and public sectors increased by 1.4% and 3.1% respectively in real terms in the fourth quarter of 2021.
- Over the same period, total exports of goods recorded an increase of 13.3% in real terms over a year earlier, moderated from the increase of 14.2% in the third quarter. Imports of goods grew by 9.9% in real terms in the fourth quarter of 2021, compared with the increase of 16.9% in the third quarter. For 2021 as a whole, total exports of goods and imports of goods recorded increases of 19.0% and 17.6% respectively in real terms over 2020.
- Exports of services rose by 6.9% in real terms in the fourth quarter of 2021 over a year earlier, compared with the increase of 5.4% in the third quarter. Imports of services increased by 4.6% in real terms in the fourth quarter of 2021, compared with the increase of 6.0% in the third quarter. For 2021 as a whole, exports of services and imports of services recorded increases by 1.1% and 1.7% respectively in real terms over 2020.
- The implicit price deflator (IPD) of GDP, as a broad measure of overall inflation in the economy, increased by 1.4% in the fourth quarter of 2021 over a year earlier, compared with the increase of 1.1% in the third quarter. For 2021 as a whole, the IPD of GDP increased by 0.5% over 2020.
- As compared with the figures published in the last quarterly report, after incorporation of the latest information available, the year-on-year rate of change in real terms in the whole year of 2020 was revised from -6.1% to -6.5%. For 2021, the year-on-year real growth rates of GDP for the first and the second quarter remained at 8.0% and 7.6% respectively while that for the third quarter was revised from 5.4% to 5.5%. As compared with the advance estimates released on 28 January 2022, the year-on-year real growth rate of GDP for the fourth quarter of 2021 remained at 4.8%; and the real growth on a seasonally adjusted quarter-to-quarter comparison basis also remained unchanged.
GDP by economic activity for the third quarter of 2021
- The preliminary figures of chain volume measures of GDP by economic activity for the third quarter of 2021, which had already been released in late December 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 5.2% in real terms in the third quarter of 2021 over a year earlier, compared with the 6.6% increase in the second quarter. Hong Kong’s economic recovery became more entrenched in the third quarter of 2021 alongside the continued revival of global economic activity and stable local epidemic situation. Consumption Voucher Scheme also provided additional support to consumption-related industries.
- Analysed by constituent services sector, net output in the import and export, wholesale and retail trades sector increased by 8.5% in real terms in the third quarter of 2021 over a year earlier, compared with the increase of 15.5% in the second quarter.
- Net output in the financing and insurance sector increased by 2.9% in real terms in the third quarter of 2021 over a year earlier, following the 6.0% rise in the second 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 46.4% in real terms in the third quarter of 2021 over a year earlier, compared with the increase of 16.7% in the second quarter.
- Net output in the transportation, storage, postal and courier services sector increased by 19.1% in real terms in the third quarter of 2021 over a year earlier, compared with the increase of 18.7% in the second quarter.
- Net output in the information and communications sector increased by 2.5% in real terms in the third quarter of 2021 over a year earlier, compared with the growth of 2.2% in the second quarter.
- Net output in the real estate, professional and business services sector registered an increase of 2.7% in real terms in the third quarter of 2021 over a year earlier, compared with the 2.3% growth in the second quarter.
- Net output in the public administration, social and personal services sector rose by 3.8% in real terms in the third quarter of 2021 over a year earlier, following the 4.3% increase in the second quarter.
- As for sectors other than the services sectors, net output in the local manufacturing sector increased by 7.6% in real terms in the third quarter of 2021 over a year earlier, compared with the increase of 5.6% in the second quarter.
- Net output in the electricity, gas and water supply, and waste management sector increased by 3.6% in real terms in the third quarter of 2021 over a year earlier, compared with the increase of 5.5% in the second quarter.
- Net output in the construction sector increased by 2.1% in real terms in the third quarter of 2021 over a year earlier, compared with the increase of 0.8% in the second quarter.
GDP by economic activity at current prices for 2020
- 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 2020 showed that the financing and insurance sector accounted for the largest share (23.3%) of the GDP, followed by the public administration, social and personal services sector (20.7%), and the import and export, wholesale and retail trades sector (18.5%).
GNI for the third quarter of 2021
- The preliminary figures of Gross National Income (GNI) for the third quarter of 2021, which were released in mid-December 2021, were also revised accordingly based on the revised GDP estimates.
- In the third quarter of 2021, GNI increased by 8.4% over a year earlier to $795.9 billion at current market prices, compared with the 10.3% increase in the second quarter of 2021.
- Measured at current market prices, the value of GNI was larger than GDP by $63.8 billion in the third quarter of 2021, representing a net external primary income inflow of the same amount and equivalent to 8.7% of GDP in that quarter.
- After netting out the effect of price changes, real GNI increased by 7.8% in the third quarter of 2021 over a year earlier.
- Total primary income inflow into Hong Kong, estimated at $446.8 billion in the third quarter of 2021 and equivalent to 61.0% of GDP in that quarter, increased by 9.9% 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 9.2% and 23.4% respectively over a year earlier. Other investment income (OII) and income on reserve assets decreased by 30.3% and 17.6% respectively from a year earlier.
- Total primary income outflow, estimated at $383.0 billion in the third quarter of 2021 and equivalent to 52.3% of GDP in that quarter, increased by 6.7% over a year earlier. Regarding the major components of total primary income outflow, DII and PII increased by 10.2% and 1.9% respectively over a year earlier. OII decreased by 35.3% from a year earlier.
- Taking the inflow and outflow together, a net external primary income inflow of $63.8 billion was recorded in the third quarter of 2021, compared with the net income inflow of $84.2 billion in the second quarter of 2021.
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