Gross Domestic Product for the 3rd quarter 2018
GDP by expenditure component for the third quarter of 2018
- In the third quarter of 2018, the Gross Domestic Product (GDP) increased by 2.9% in real terms over a year earlier, compared with the increase of 3.5% in the second quarter.
- On a seasonally adjusted quarter-to-quarter comparison basis, GDP increased marginally by 0.1% in real terms in the third quarter of 2018 when compared with the second quarter.
- Analysed by major GDP component, private consumption expenditure continued to increase, by 5.2% in real terms in the third quarter of 2018 over a year earlier, after the 6.0% growth in the second quarter.
- Government consumption expenditure measured in national accounts terms increased by 3.3% in real terms in the third quarter of 2018 over a year earlier, compared with the increase of 4.3% in the second quarter.
- Gross domestic fixed capital formation (GDFCF) increased by 8.2% in real terms in the third quarter of 2018 over a year earlier, compared with the increase of 1.1% in the second quarter.
- Within the total GDFCF, expenditure on machinery, equipment and intellectual property products increased significantly by 21.2% in real terms in the third quarter of 2018 over a year earlier, compared with the increase of 4.9% in the second quarter.
- On the other hand, expenditure on building and construction in GDFCF decreased by 0.3% in real terms in the third quarter of 2018 from a year earlier, compared with the decrease of 1.6% in the second quarter. Within this category, expenditure on building and construction in respect of private sector increased by 0.8% in real terms in the third quarter of 2018 while that of the public sector decreased by 2.5%.
- Over the same period, total exports of goods increased by 5.0% in real terms over a year earlier, compared with the increase of 4.6% in the second quarter. Imports of goods increased by 7.6% in real terms in the third quarter of 2018, compared with the increase of 6.3% in the second quarter.
- Exports of services increased by 3.1% in real terms in the third quarter of 2018 over a year earlier, slower than the increase of 5.9% in the second quarter. Imports of services increased by 3.4% in real terms in the third quarter of 2018, as against the decrease of 0.1% in the second quarter.
- The implicit price deflator of GDP, as a broad measure of overall inflation in the economy, increased by 3.7% in the third quarter of 2018 over a year earlier, compared with the increase of 4.0% in the second quarter.
- After incorporation of the latest information available, while the value of GDP was slightly revised, the year-on-year growth rate of GDP in real terms recorded in the second quarter of 2018 remained at 3.5%. On a seasonally adjusted quarter-to-quarter comparison basis, the 0.2% decrease of GDP in real terms recorded in the second quarter also remained unchanged.
GDP by economic activity for the second quarter of 2018
- The preliminary figures of chain volume measures of GDP by economic activity for the second quarter of 2018, which had already been released in late September 2018, 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 3.8% in real terms in the second quarter of 2018 over a year earlier, compared with the 4.4% increase in the first quarter of 2018.
- Analysed by constituent services sector and on a year-on-year comparison, net output in the import and export, wholesale and retail trades sector grew by 5.8% in real terms in the second quarter of 2018 over a year earlier, following the growth of 6.4% in the first quarter. The continued growth of this sector was mainly attributable to the solid growth of external merchandise trade during the quarter.
- Net output in the financing and insurance sector increased by 5.1% in real terms in the second quarter of 2018 over a year earlier, compared with the 6.8% rise in the first quarter. Trading activities stayed generally active during the quarter, rendering support to the continued growth of net output in this sector.
- Net output in the accommodation services (covering hotels, guesthouses, boarding houses and other establishments providing short term accommodation) and food services sector grew by 3.8% in real terms in the second quarter of 2018 over a year earlier, following the increase of 5.9% in the first quarter.
- Net output in the transportation, storage, postal and courier services sector rose by 4.3% in real terms in the second quarter of 2018 over a year earlier, compared with the growth of 4.9% in the first quarter.
- Net output in the information and communications sector registered an increase of 3.3% in real terms in the second quarter of 2018 over a year earlier, compared with the growth of 3.1% in the first quarter.
- Net output in the real estate, professional and business services sector rose by 2.0% in real terms in the second quarter of 2018 over a year earlier, similar to the growth of 2.1% in the first quarter.
- Net output in the public administration, social and personal services sector increased by 2.9% in real terms in the second quarter of 2018 over a year earlier, compared with the growth of 3.4% in the first quarter.
- As for sectors other than the services sectors, net output in the local manufacturing sector rose by 1.6% in real terms in the second quarter of 2018 over a year earlier, compared with the 1.1% growth in the first quarter.
- Net output in the electricity, gas and water supply, and waste management sector recorded an increase of 4.4% in real terms in the second quarter of 2018 over a year earlier, compared with the growth of 4.2% in the first quarter.
- Net output in the construction sector dropped by 1.8% in real terms in the second quarter of 2018 from a year earlier, as against the increase of 3.5% in the first
quarter.
GDP by economic activity at current prices for 2017
- 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 preliminary figures of GDP by economic activity at current prices for 2017 showed that the import and export, wholesale and retail trades sector accounted for the largest share (21.5%) of the GDP, followed by the financing and insurance sector (18.9%), and the public administration, social and personal services sector (18.2%).
GNI for the second quarter of 2018
- The preliminary figures of Gross National Income (GNI) for the second quarter of 2018, which were released in mid-September 2018, were also revised accordingly based on the revised GDP estimates.
- In the second quarter of 2018, GNI increased by 8.0% over a year earlier to $733.1 billion at current market prices, compared with the 9.3% increase in the first quarter of 2018.
- Measured at current market prices, the value of GNI was larger than GDP by $56.6 billion in the second quarter of 2018, representing a net external primary income inflow of the same amount, and equivalent to 8.4% of GDP in that quarter.
- After netting out the effect of price changes, real GNI increased by 4.2% in the second quarter of 2018 over a year earlier.
- Total primary income inflow into Hong Kong, estimated at $459.3 billion in the second quarter of 2018 and equivalent to 67.9% of GDP in that quarter, increased by 17.3% over a year earlier. As for the major components of total primary income inflow, direct investment income (DII), portfolio investment income (PII), other investment income (OII) and income on reserve assets increased by 14.8%, 10.5%, 63.3% and 46.2% respectively over a year earlier.
- Total primary income outflow, estimated at $402.7 billion in the second quarter of 2018 and equivalent to 59.5% of GDP in that quarter, increased by 18.1% over a year earlier. Regarding the major components of total primary income outflow, DII, PII and OII increased by 13.0%, 23.3% and 69.2% respectively over a year earlier.
- Taking the inflow and outflow together, a net external primary income inflow of $56.6 billion was recorded in the second quarter of 2018, compared with the net income inflow of $24.2 billion in the first quarter of 2018.
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