Gross Domestic Product for 2nd quarter 2003

GDP by expenditure component for the second quarter of 2003

• In the second quarter of 2003, the Gross Domestic Product (GDP) decreased by 0.5% in real terms over a year earlier, compared with the growth of 4.5% in the first quarter of 2003.
• On a seasonally adjusted quarter-to-quarter comparison, GDP recorded a decline of 3.7% in real terms in the second quarter of 2003.
• Analysed by major GDP component, private consumption expenditure (PCE) dropped by 2.2% in real terms in the second quarter of 2003 over a year earlier, compared with the 2.0% decline in the first quarter of 2003.
• Government consumption expenditure (GCE) in national accounts terms grew marginally by 0.6% in real terms in the second quarter of 2003 over a year earlier, following the 1.3% growth in the first quarter of 2003.
• Gross domestic fixed capital formation (GDFCF) decreased by 5.3% in real terms in the second quarter of 2003, as against the increase of 3.5% in the first quarter of 2003.
• Within the total GDFCF, expenditure on machinery, equipment and computer software recorded a decrease of 2.4% in real terms in the second quarter of 2003 over a year earlier, compared with the 11.9% increase in the first quarter of 2003.
• Expenditure on building and construction fell by 7.2% in real terms in the second quarter of 2003, following the decline of 3.5% in the first quarter of 2003.
• Over the same period, expenditure on building and construction of the private sector fell by 9.6% in real terms while that of public sector recorded a decrease of 1.2%.
• Total exports (comprising re-exports and domestic exports) recorded a double-digit growth of 14.3% in real terms in the second quarter of 2003 over a year earlier, moderating from the 19.1% growth in the first quarter of 2003. Imports of goods increased by 10.9% in real terms in the second quarter of 2003.
• On invisible trade, exports of services fell by 14.7% in real terms in the second quarter of 2003 over a year earlier, in sharp contrast to the 12.6% increase in the first quarter of 2003. Imports of services also decreased significantly by 19.6% in the second quarter of 2003. Inbound tourism and resident outbound travel were hard hit with the outbreak of Severe Acute Respiratory Syndrome (SARS).
• The implicit price deflator of GDP, as an overall measure of inflation in the economy, recorded a year-on-year decline of 5.5% in the second quarter of 2003.

GDP by economic activity for the first quarter of 2003

• Preliminary figures of GDP by economic activity at constant prices for the first quarter of 2003, which were released in end-June 2003, were revised as more data became available.
• The revised figures showed that net output in all the service activities taken together increased by 5.6% in real terms in the first quarter of 2003 over a year earlier, after a 6.4% increase in the fourth quarter of 2002.
• Analysed by constituent sector and on a year-on-year comparison, net output in the wholesale, retail and import and export trades, restaurants and hotels sector surged by 14.4% in real terms in the first quarter of 2003, at a similar pace of the 14.5% growth in the fourth quarter of 2002.
• Net output in the transport, storage and communications sector grew by 3.8% in real terms in the first quarter of 2003 over a year earlier, after a 6.2% rise in the fourth quarter of 2002. The buoyancy in external trade underpinned the continued growth in transport and storage services.
• Net output in financing, insurance, real estate and business services rose by 2.7% in real terms in the first quarter of 2003 over a year earlier, after an increase of 2.5% in the fourth quarter of 2002.
• On the other hand, net output in community, social and personal services decreased by 0.4% in real terms in the first quarter of 2003 over a year earlier, following a 0.5% rise in the fourth quarter of 2002.
• Net output in the local manufacturing sector shrank by 8.8% in real terms in the first quarter of 2003 over a year earlier, after a 9.2% decrease in the fourth quarter of 2002.
• Net output in the construction sector declined by 3.2% in real terms in the first quarter of 2003 over a year earlier, following a decrease of 6.4% in the fourth quarter of 2002.
• As to the electricity, gas and water sector, net output rose by 4.3% in real terms in the first quarter of 2003 over a year earlier, following a slight increase of 0.7% in the fourth quarter of 2002.