Gross Domestic Product for 2nd Quarter 2022

GDP by expenditure component for the second quarter of 2022

• In the second quarter of 2022, the Gross Domestic Product (GDP) decreased by 1.3% in real terms from a year earlier, compared with the decrease of 3.9% in the first quarter.
• On a seasonally adjusted quarter-to-quarter comparison basis, GDP increased by 1.0% in real terms in the second quarter of 2022 when compared with the first quarter.
• Analysed by major GDP component, private consumption expenditure increased slightly by 0.1% in real terms in the second quarter of 2022 over a year earlier, as against the decrease of 5.8% in the first quarter.
• Government consumption expenditure measured in national accounts terms grew by 13.0% in real terms in the second quarter of 2022 over a year earlier, after the increase of 6.7% in the first quarter.
• Gross domestic fixed capital formation (GDFCF) decreased by 3.0% in real terms in the second quarter of 2022 from a year earlier, compared with the decrease of 7.8% in the first quarter.
• Within the total GDFCF, expenditure on machinery, equipment and intellectual property products decreased by 2.1% in real terms in the second quarter of 2022 from a year earlier, compared with the decrease of 14.5% in the first quarter.
• On the other hand, expenditure on building and construction in GDFCF rose by 5.2% in real terms in the second quarter of 2022 over a year earlier, compared with the increase of 1.1% in the first quarter. Within this category, expenditure on building and construction in respect of private and public sectors decreased by 6.7% and increased by 26.5% respectively in real terms in the second quarter of 2022.
• Over the same period, total exports of goods recorded a decline of 8.6% in real terms from a year earlier, deteriorating from the decrease of 4.5% in the first quarter. Imports of goods fell by 6.2% in real terms in the second quarter of 2022, after the decrease of 5.9% in the first quarter.
• Exports of services rose by 2.3% in real terms in the second quarter of 2022 over a year earlier, as against the decrease of 2.9% in the first quarter. Imports of services decreased by 0.5% in real terms in the second quarter of 2022, compared with the decrease of 3.8% in the first quarter.
• The implicit price deflator of GDP, as a broad measure of overall inflation in the economy, increased by 0.9% in the second quarter of 2022 over a year earlier, compared with the increase of 1.0% 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 rate of change of GDP in real terms for the first quarter of 2022 was revised from -4.0% to -3.9%. As compared with the advance estimates released on 1 August 2022, the year-on-year rate of change of GDP in real terms for the second quarter of 2022 was revised from -1.4% to -1.3%; and the real growth on a seasonally adjusted quarter-to-quarter comparison basis was also revised from 0.9% to 1.0%.

GDP by economic activity for the first quarter of 2022

• The preliminary figures of chain volume measures of GDP by economic activity for the first quarter of 2022, which had already been released in late June 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 decreased by 3.1% in real terms in the first quarter of 2022 from a year earlier, as against the 4.8% increase in the fourth quarter of 2021. Most industries were hit by the slower growth in global demand, epidemic-induced cross boundary transportation disruptions, and sharp weakening in domestic economic activities amid the austere local epidemic situation.
• Analysed by constituent services sector, net output in the import and export, wholesale and retail trades sector decreased by 7.1% in real terms in the first quarter of 2022 from a year earlier, as against the increase of 7.7% in the fourth quarter of 2021.
• Net output in the accommodation services (covering hotels, guesthouses, boarding houses and other establishments providing short term accommodation) and food services sector decreased by 29.0% in real terms in the first quarter of 2022 from a year earlier, as against the increase of 36.8% in the fourth quarter of 2021.
• Net output in the transportation, storage, postal and courier services sector decreased by 12.0% in real terms in the first quarter of 2022 from a year earlier, as against the increase of 7.4% in the fourth quarter of 2021.
• Net output in the real estate, professional and business services sector registered a decrease of 5.4% in real terms in the first quarter of 2022 from a year earlier, as against the 2.4% growth in the fourth quarter of 2021.
• Net output in the public administration, social and personal services sector dropped by 0.6% in real terms in the first quarter of 2022 from a year earlier, as against the increase of 3.6% in the fourth quarter of 2021.
• Net output in the financing and insurance sector increased marginally by 0.1% in real terms in the first quarter of 2022 over a year earlier, following the 3.4% rise in the fourth quarter of 2021.
• Net output in the information and communications sector increased by 0.9% in real terms in the first quarter of 2022 over a year earlier, compared with the growth of 2.4% in the fourth quarter of 2021.
• As for sectors other than the services sectors, net output in the local manufacturing sector decreased by 1.3% in real terms in the first quarter of 2022 from a year earlier, as against the increase of 5.8% in the fourth quarter of 2021.
• 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 2022 over a year earlier, compared with the increase of 4.4% in the fourth quarter of 2021.
• Net output in the construction sector increased by 3.3% in real terms in the first quarter of 2022 over a year earlier, compared with the 0.8% increase in the fourth quarter of 2021.

GNI for the first quarter of 2022

• The preliminary figures of Gross National Income (GNI) for the first quarter of 2022, which were released in mid-June 2022, were also revised accordingly based on the revised GDP estimates.
• In the first quarter of 2022, GNI decreased by 2.7% from a year earlier to $705.7 billion at current market prices, compared with the 7.2% increase in the fourth quarter of 2021.
• Measured at current market prices, the value of GNI was larger than GDP by $23.2 billion in the first quarter of 2022, representing a net external primary income inflow of the same amount and equivalent to 3.4% of GDP in that quarter.
• After netting out the effect of price changes, real GNI decreased by 4.5% in the first quarter of 2022 from a year earlier.
• Total primary income inflow into Hong Kong, estimated at $358.2 billion in the first quarter of 2022 and equivalent to 52.5% of GDP in that quarter, increased by 6.5% 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 7.7% and 8.3% respectively over a year earlier. Other investment income (OII) and income on reserve assets decreased by 8.8% and 7.1% respectively from a year earlier.
• Total primary income outflow, estimated at $334.9 billion in the first quarter of 2022 and equivalent to 49.1% of GDP in that quarter, increased by 6.4% over a year earlier. Regarding the major components of total primary income outflow, DII increased by 8.3% over a year earlier. PII and OII decreased by 5.0% and 15.0% respectively from a year earlier.
• Taking the inflow and outflow together, a net external primary income inflow of $23.2 billion was recorded in the first quarter of 2022, compared with the net income inflow of $35.5 billion in the fourth quarter of 2021.