Gross Domestic Product for 3rd Quarter 2019
GDP by expenditure component for the third quarter of 2019
- In the third quarter of 2019, the Gross Domestic Product (GDP) decreased by 2.9% in real terms from a year earlier, compared with the increase of 0.4% in the second quarter.
- On a seasonally adjusted quarter-to-quarter comparison basis, GDP decreased by 3.2% in real terms in the third quarter of 2019 when compared with the second quarter.
- Analysed by major GDP component, private consumption expenditure decreased by 3.4% in real terms in the third quarter of 2019 from a year earlier, as against the 1.3% growth in the second quarter.
- Government consumption expenditure measured in national accounts terms grew by 5.9% in real terms in the third quarter of 2019 over a year earlier, after the increase of 4.0% in the second quarter.
- Gross domestic fixed capital formation (GDFCF) decreased significantly by 16.3% in real terms in the third quarter of 2019 from a year earlier, compared with the decrease of 10.8% in the second quarter.
- Within the total GDFCF, expenditure on machinery, equipment and intellectual property products decreased notably by 26.6% in real terms in the third quarter of 2019 from a year earlier, larger than the decline of 12.1% in the second quarter.
- On the other hand, expenditure on building and construction in GDFCF dropped by 5.7% in real terms in the third quarter of 2019 from a year earlier, after the decline of 9.3% in the second quarter. Within this category, expenditure on building and construction in respect of private and public sectors decreased by 6.7% and 3.5% respectively in real terms in the third quarter of 2019.
- Over the same period, total exports of goods recorded a decrease of 7.1% in real terms from a year earlier, compared with the decrease of 5.4% in the second quarter of 2019. Imports of goods fell by 11.2% in real terms in the third quarter of 2019, compared with the decline of 6.7% in the second quarter.
- Exports of services decreased by 13.8% in real terms in the third quarter of 2019 from a year earlier, following the decline of 1.1% in the second quarter. Imports of services decreased by 4.0% in real terms in the third quarter of 2019, as against the increase of 1.3% in the second quarter.
- The implicit price deflator of GDP, as a broad measure of overall inflation in the economy, increased by 2.5% in the third quarter of 2019 over a year earlier, compared with the increase of 2.9% in the second quarter.
- As compared with the figures published in the last quarterly report, after incorporation of the latest information available, the year-on-year growth rate of GDP in real terms for the second quarter of 2019 was revised from 0.5% to 0.4%. As compared with the advance estimates released on 31 October 2019, the year-on-year percentage change of GDP in real terms for the third quarter of 2019 remained at the decrease of 2.9%; whereas on a seasonally adjusted quarter-to-quarter comparison basis, the decrease in real terms also remained at 3.2%.
GDP by economic activity for the second quarter of 2019
- The preliminary figures of chain volume measures of GDP by economic activity for the second quarter of 2019, which had already been released in late September 2019, 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 1.3% in real terms in the second quarter of 2019 over a year earlier, compared with the 1.9% increase in the first quarter of 2019.
- Analysed by constituent services sector and on a year-on-year comparison, net output in the import and export, wholesale and retail trades sector dropped by 3.7% in real terms in the second quarter of 2019 from a year earlier, after the decrease of 0.8% in the first quarter. This was mainly attributable to the contraction of external demand in the second quarter amid softening global economic growth, intensifying US-Mainland trade tensions and the resultant slowdown in manufacturing and trading activities in Asia.
- Net output in the financing and insurance sector increased by 3.7% in real terms in the second quarter of 2019 over a year earlier, compared with the 3.0% rise in the first quarter. Stock trading activities stayed generally active and fund raising activities showed relative improvement during the quarter, leading to a continuous 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 decreased by 1.3% in real terms in the second quarter of 2019 over a year earlier, as against the increase of 2.8% in the first quarter.
- Net output in the transportation, storage, postal and courier services sector increased by 2.0% in real terms in the second quarter of 2019 over a year earlier, following the growth of 2.4% in the first quarter.
- Net output in the information and communications sector increased by 6.1% in real terms in the second quarter of 2019 over a year earlier, compared with the growth of 4.8% in the first quarter.
- Net output in the real estate, professional and business services sector rose by 1.6% in real terms in the second quarter of 2019 over a year earlier, similar to the growth of 1.7% in the first quarter.
- Net output in the public administration, social and personal services sector recorded an increase of 3.3% in real terms in the second quarter of 2019 over a year earlier, similar to 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 0.4% in real terms in the second quarter of 2019 over a year earlier, compared with the growth of 1.4% in the first quarter.
- Net output in the electricity, gas and water supply, and waste management sector dropped by 1.3% in real terms in the second quarter of 2019 from a year earlier, after the decrease of 0.5% in the first quarter.
- Net output in the construction sector decreased by 9.0% in real terms in the second quarter of 2019 from a year earlier, following the decrease of 2.6% in the first quarter.
GDP by economic activity at current prices for 2018
- 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 2018 showed that the import and export, wholesale and retail trades sector accounted for the largest share (21.3%) of the GDP, followed by the financing and insurance sector (19.9%), and the public administration, social and personal services sector (18.4%).
GNI for the second quarter of 2019
- The preliminary figures of Gross National Income (GNI) for the second quarter of 2019, which were released in mid-September 2019, were also revised accordingly based on the revised GDP estimates.
- In the second quarter of 2019, GNI increased by 3.7% over a year earlier to $759.1 billion at current market prices, compared with the 3.5% increase in the first quarter of 2019.
- Measured at current market prices, the value of GNI was larger than GDP by $61.0 billion in the second quarter of 2019, 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 0.7% in the second quarter of 2019 over a year earlier.
- Total primary income inflow into Hong Kong, estimated at $478.2 billion in the second quarter of 2019 and equivalent to 68.5% of GDP in that quarter, increased by 4.1% 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 0.8%, 8.0%, 8.9% and 17.3% respectively over a year earlier.
- Total primary income outflow, estimated at $417.2 billion in the second quarter of 2019 and equivalent to 59.8% of GDP in that quarter, increased by 3.6% over a year earlier. Regarding the major components of total primary income outflow, DII, PII and OII increased by 2.5%, 5.7% and 9.2% respectively over a year earlier.
- Taking the inflow and outflow together, a net external primary income inflow of $61.0 billion was recorded in the second quarter of 2019, compared with the net income inflow of $23.0 billion in the first quarter of 2019.
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