June 20, 2023
HONG KONG – Hong Kong’s gross national income (GNI) increased by 6.8 percent in the first quarter of 2023 over a year earlier to HK$756.1 billion at current market prices, according to the Census and Statistics Department (C&SD).
The gross domestic product (GDP), estimated at HK$716.6 billion at current market prices in the same quarter, recorded a 4.6 percent increase over a year earlier, showed data released by the C&SD on Friday.
The value of GNI was larger than GDP by HK$39.4 billion in the first quarter of 2023, which was equivalent to 5.5 percent of GDP during the quarter, mainly attributable to a net inflow of investment income.
After netting out the effect of price changes over the same period, Hong Kong’s GNI – which denotes the total income earned by the residents from engaging in various economic activities – increased by 4.1 percent in real terms in Q1 of 2023 over a year earlier.
Analyzed by country or territory, the mainland continued to be the largest source of the SAR’s total primary income inflow in Q1 of 2023, accounting for 47.9 percent
The corresponding GDP in the same quarter increased by 2.7 percent in real terms, the data showed.
Hong Kong’s total inflow of primary income, which mainly comprises investment income, estimated at HK$434.1 billion in the first quarter of 2023 and equivalent to 60.6 percent of GDP in that quarter, recorded a significant increase of 21.2 percent over a year earlier.
Meanwhile, total primary income outflow, estimated at HK$394.7 billion in the first quarter of 2023 and equivalent to 55.1 percent of GDP in that quarter, also increased significantly by 17.8 percent year-on-year.
As for the major components of investment income inflow, direct investment income (DII) increased by 4.8 percent over a year earlier, mainly due to the increase in earnings of some prominent local enterprises from their direct investment abroad.
Portfolio investment income (PII) recorded a significant increase of 19.3 percent over a year earlier, mainly attributable to the increase in interest income received by resident investors from their holdings of non-resident debt securities.
Regarding the major components of investment income outflow, DII increased by 7.7 percent year-on-year, mainly due to the increase in earnings of some prominent multinational enterprises from their direct investment in Hong Kong.
PII decreased by 1.9 percent, mainly attributable to the decrease in dividend payout to non-resident investors from their holdings of resident equity securities.
Analyzed by country or territory, the Chinese mainland continued to be the largest source of the city’s total primary income inflow in Q1 of 2023, accounting for 47.9 percent, according to the C&SD data. This was followed by the British Virgin Islands, with a share of 12.8 percent.
Regarding total primary income outflow, the mainland and the British Virgin Islands remained the most important destinations in the first quarter of 2023, accounting for 28.8 percent and 22.6 percent respectively.