Gross Domestic Product for 1st Quarter 2022
GDP by expenditure component for the first quarter of 2022
- In the first quarter of 2022, the Gross Domestic Product (GDP) decreased by 4.0% in real terms from a year earlier, compared with the increase of 4.7% in the fourth quarter of 2021.
- On a seasonally adjusted quarter-to-quarter comparison basis, GDP decreased by 3.0% in real terms in the first quarter of 2022 when compared with the fourth quarter of 2021.
- Analysed by major GDP component, private consumption expenditure decreased by 5.5% in real terms in the first quarter of 2022 from a year earlier, as against the increase of 5.3% in the fourth quarter of 2021.
- Government consumption expenditure measured in national accounts terms grew by 6.0% in real terms in the first quarter of 2022 over a year earlier, after the increase of 4.1% in the fourth quarter of 2021.
- Gross domestic fixed capital formation (GDFCF) decreased by 8.4% in real terms in the first quarter of 2022 from a year earlier, deteriorating from the decrease of 0.6% in the fourth quarter of 2021.
- Within the total GDFCF, expenditure on machinery, equipment and intellectual property products decreased by 14.0% in real terms in the first quarter of 2022 from a year earlier, compared with the decrease of 2.3% in the fourth quarter of 2021.
- On the other hand, expenditure on building and construction in GDFCF fell slightly by 0.2% in real terms in the first quarter of 2022 from a year earlier, as against the increase of 1.5% in the fourth quarter of 2021. Within this category, expenditure on building and construction in respect of private and public sectors decreased by 12.9% and increased by 15.8% respectively in real terms in the first quarter of 2022.
- Over the same period, total exports of goods recorded a decline of 4.5% in real terms from a year earlier, as against the increase of 13.5% in the fourth quarter of 2021. Imports of goods decreased by 5.9% in real terms in the first quarter of 2022, as against the increase of 9.9% in the fourth quarter of 2021.
- Exports of services fell by 2.8% in real terms in the first quarter of 2022 from a year earlier, as against the increase of 6.9% in the fourth quarter of 2021. Imports of services decreased by 3.4% in real terms in the first quarter of 2022, as against the increase of 4.5% in the fourth quarter of 2021.
- The implicit price deflator of GDP, as a broad measure of overall inflation in the economy, increased by 0.4% in the first quarter of 2022 over a year earlier, compared with the increase of 2.0% in the fourth quarter of 2021.
- The reference year for the chain volume measures of GDP and its components has been revised from 2019 to 2020. Re-referencing affects the levels, but not the rates of change, of the chain volume measures. Apart from re-referencing, the volume estimates for 2021, which were previously valued at 2019 prices, have also been revalued at 2020 prices. This rebasing of the volume measures affects the rates of change in real terms of the annual and quarterly GDP for 2021. These re-referencing and rebasing processes are annual updating exercises following the introduction of the annually re-weighted chain linking approach in compiling the volume measures of GDP.
- As compared with the figures published in the last quarterly report, after incorporation of the latest information available and rebasing of the volume estimates for 2021, the year-on-year growth rates of GDP in real terms for the third and fourth quarters and the whole year of 2021 were revised from 5.5%, 4.8% and 6.4% to 5.4%, 4.7% and 6.3% respectively; while those for the first and second quarters remained unchanged. As compared with the advance estimates released on 3 May 2022, the year-on-year rate of change of GDP in real terms for the first quarter of 2022 remained at the decrease of 4.0%; and the rate of change in real terms on a seasonally adjusted quarter-to-quarter comparison basis was revised from -2.9% to -3.0%.
GDP by economic activity for the fourth quarter of 2021 and the whole year of 2021
- The preliminary figures of chain volume measures of GDP by economic activity for the fourth quarter of 2021 and the whole year of 2021, which had already been released in late March 2022, 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 4.8% in real terms in the fourth quarter of 2021 over a year earlier, compared with the 5.3% increase in the third quarter. Sustained recovery in the global economy and stable local epidemic situation continued to render support to Hong Kong’s economic recovery in the fourth quarter of 2021. For 2021 as a whole, the net output increased by 5.8% in real terms over 2020 for all the services sectors taken together.
- Analysed by constituent services sector, net output in the import and export, wholesale and retail trades sector increased by 7.7% in real terms in the fourth quarter of 2021 over a year earlier, compared with the increase of 8.3% in the third quarter. For 2021 as a whole, net output in this sector saw an increase of 12.9% in real terms.
- Net output in the financing and insurance sector increased by 3.4% in real terms in the fourth quarter of 2021 over a year earlier, following the 2.8% rise in the third quarter. For 2021 as a whole, net output in this sector increased by 4.8% in real terms.
- Net output in the accommodation services (covering hotels, guesthouses, boarding houses and other establishments providing short term accommodation) and food services sector increased by 36.8% in real terms in the fourth quarter of 2021 over a year earlier, compared with the increase of 44.4% in the third quarter. For 2021 as a whole, net output in this sector recorded an increase of 22.0% in real terms.
- Net output in the transportation, storage, postal and courier services sector increased by 7.4% in real terms in the fourth quarter of 2021 over a year earlier, compared with the increase of 17.6% in the third quarter. For 2021 as a whole, net output in this sector increased by 8.6% in real terms.
- Net output in the information and communications sector increased by 2.4% in real terms in the fourth quarter of 2021 over a year earlier, similar to the increase of 2.3% in the third quarter. For 2021 as a whole, net output in this sector increased by 2.6% in real terms.
- Net output in the real estate, professional and business services sector registered an increase of 2.4% in real terms in the fourth quarter of 2021 over a year earlier, compared with the 3.3% growth in the third quarter. For 2021 as a whole, net output in this sector rose by 2.4% in real terms.
- Net output in the public administration, social and personal services sector rose by 3.6% in real terms in the fourth quarter of 2021 over a year earlier, similar to the growth of 3.7% in the third quarter. For 2021 as a whole, net output in this sector rose by 3.5% in real terms.
- As for sectors other than the services sectors, net output in the local manufacturing sector increased by 5.8% in real terms in the fourth quarter of 2021 over a year earlier, compared with the increase of 7.6% in the third quarter. For 2021 as a whole, net output in this sector rose by 5.5% in real terms.
- Net output in the electricity, gas and water supply, and waste management sector increased by 4.4% in real terms in the fourth quarter of 2021 over a year earlier, compared with the increase of 4.0% in the third quarter. For 2021 as a whole, net output in this sector registered an increase of 3.7% in real terms.
- Net output in the construction sector increased by 0.8% in real terms in the fourth quarter of 2021 over a year earlier, compared with the increase of 1.7% in the third quarter. For 2021 as a whole, net output in this sector increased by 0.7% in real terms.
GNI for the fourth quarter of 2021 and the whole year of 2021
- The preliminary figures of Gross National Income (GNI) for the fourth quarter of 2021 and the whole year of 2021, which were released in mid-March 2022, were also revised accordingly based on the revised GDP estimates.
- In the fourth quarter of 2021, GNI increased by 7.2% over a year earlier to $789.9 billion at current market prices, compared with the 8.3% increase in the third quarter of 2021.
- Measured at current market prices, the value of GNI was larger than GDP by $35.5 billion in the fourth quarter of 2021, representing a net external primary income inflow of the same amount and equivalent to 4.7% of GDP in that quarter.
- After netting out the effect of price changes, real GNI increased by 6.2% in the fourth quarter of 2021 over a year earlier.
- Total primary income inflow into Hong Kong, estimated at $377.8 billion in the fourth quarter of 2021 and equivalent to 50.1% of GDP in that quarter, increased by 8.9% 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 12.3% and 12.9% respectively over a year earlier. Other investment income (OII) and income on reserve assets decreased by 31.7% and 23.4% respectively from a year earlier.
- Total primary income outflow, estimated at $342.3 billion in the fourth quarter of 2021 and equivalent to 45.4% of GDP in that quarter, increased by 8.0% over a year earlier. Regarding the major components of total primary income outflow, DII increased by 11.2% over a year earlier. PII and OII decreased by 0.9% and 37.1% respectively from a year earlier.
- Taking the inflow and outflow together, a net external primary income inflow of $35.5 billion was recorded in the fourth quarter of 2021, compared with the net income inflow of $63.8 billion in the third quarter of 2021.
- For 2021 as a whole, GNI increased by 8.6% over a year earlier to $3,074.7 billion at current market prices. The difference of $205.0 billion from GDP for the same year represented a net external primary income inflow of the same amount and equivalent to 7.1% of GDP in that year. The total primary income inflow was estimated at $1,639.6 billion, or 57.1% of GDP in 2021 while the corresponding outflow at $1,434.7 billion, or 50.0% of GDP in 2021. After netting out the effect of price changes, GNI increased by 8.6% in real terms in 2021 over 2020.
* * * * * * *