# Hong Kong’s GNP increased by 14.6%, GDP recorded a 11.7% increase



## Golden Loon (Mar 14, 2005)

Hong Kong's Gross National Product (GNP) and External Factor Income Flows (EFIF) for the fourth quarter of 2007 and the whole year of 2007
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Statistics on Hong Kong’s Gross National Product (GNP) and External Factor Income Flows (EFIF) for the fourth quarter of 2007 and the whole year of 2007 are released today (March 14) by the Census and Statistics Department.

In the fourth quarter of 2007, Hong Kong’s GNP increased by 14.6% over a year earlier to $465.3 billion at current market prices. The Gross Domestic Product (GDP), estimated at $447.2 billion at current market prices in the same quarter, recorded a 11.7% increase during the period. Compared with GDP, the value of Hong Kong’s GNP was larger by $18.1 billion in the fourth quarter of 2007, representing a net external factor income inflow of the same amount, and equivalent to 4.1% of GDP in that quarter.

After netting out the effect of price changes, Hong Kong’s GNP increased by 9.4% in real terms in the fourth quarter of 2007 over a year earlier. This was higher than the corresponding increase of 6.7% recorded for GDP in the same quarter.

Total factor income inflow into Hong Kong, estimated at $245.4 billion in the fourth quarter of 2007 and equivalent to 54.9% of GDP in that quarter, increased markedly by 35.4% over a year earlier. At the same time, total factor income outflow, estimated at $227.3 billion in the fourth quarter of 2007 and equivalent to 50.8% of GDP of the same period, also recorded an increase of 29.5% over a year earlier. Taking the inflow and outflow together, a net external factor income inflow of $18.1 billion was recorded in the fourth quarter of 2007.

Within total factor income inflow, Direct Investment Income (DII) increased substantially by 40.6% over a year earlier, mainly due to increased earnings of some prominent local enterprises from investment abroad. Portfolio Investment Income (PII) increased by 18.1%, mainly attributable to the increase in dividend income received from holdings of non-resident shares during the period. Other Investment Income (OII) surged by 42.8% over a year earlier, mainly on account of increased interest income from offshore loans and deposits of the local banking sector, which in turn was the combined result of increases in interest rates and external assets of the local banking sector.

Within total factor income outflow, DII rose considerably by 30.8% over a year earlier, largely attributable to increased earnings of some prominent multinational enterprises from investment in Hong Kong during the period. PII decreased marginally by 0.7%, mainly due to the decrease in dividend income received from holdings of a number of resident publicly listed companies by non-resident investors. OII increased significantly by 37.2%, largely caused by increased liabilities of the local banking sector and higher interest rates.

Analysed by country/territory, the mainland of China continued to be the largest source of Hong Kong’s external factor income inflow in the fourth quarter of 2007, accounting for 28.3%. This was followed by the British Virgin Islands, with a share of 26.0%, reflecting continued investment income inflow from this tax haven economy where Hong Kong companies had set up a considerable number of holding companies. Other major source countries/territories were the United States of America and the United Kingdom, at 8.6% and 7.0% respectively.

The mainland of China and the British Virgin Islands were also the most important destinations for Hong Kong’s external factor income outflow in the fourth quarter of 2007, accounting for 22.9% and 20.0% respectively. Other major destination countries/territories included the United States of America, at 11.3%, and the Netherlands, at 9.1%.

For 2007 as a whole, Hong Kong’s GNP increased by 11.4% over a year earlier to $1,674.9 billion at current market prices. The difference of $62.3 billion from GDP for the same year (estimated at $1,612.6 billion) represented a net factor income inflow of the same amount and equivalent to 3.9% of GDP in the year. After netting out the effect of price changes, Hong Kong’s GNP increased by 8.4% in real terms in 2007 over 2006. The total factor income inflow was estimated at $867.1 billion, or 53.8% of GDP in 2007 while the corresponding outflow at $804.9 billion, or 49.9% of GDP.

Further Information

GDP and GNP are closely related measures of economic performance. GDP is a measure of the total value of production of all resident producing units within the economic territory of a country or territory. GNP denotes the total income earned by residents of a particular country or territory, regardless of the place in which the economic activities generating the income are undertaken. In other words, GNP is obtained by adding to GDP factor income earned by residents from outside the economic territory and deducting factor income earned by non-residents within the economic territory.

The above EFIF figures are compiled based on data obtained from the Survey of External Claims, Liabilities and Income, supplemented by data from other sources.

Figures of GNP and EFIF from the first quarter of 2006 to the fourth quarter of 2007 analysed by income component are presented in Table A, while the country/territory breakdowns of external factor income inflows and external factor income outflows for the same period are presented in Tables B(1) and B(2) respectively. 

Statistics on GNP and EFIF for 2007 are preliminary figures. They are subject to revision when more data become available.

Enquiries about GNP and EFIF statistics may be directed to the Balance of Payments Branch (2) of the Census and Statistics Department at 2116 5102.


Ends/Friday, March 14, 2008
Issued at HKT 16:15


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## Skybean (Jun 16, 2004)

Incredible growth for a relatively small city. A surprising number of billionaires which likely inflate numbers quite a bit for the per capita figures. I hope HK continues its strong growth in years to come.


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## shadyunltd (May 1, 2006)

Are you sure these are the real numbers? I mean, on Wikipedia, HK's GDP is around $300B (for 2007)...


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## Pax Sinica (Dec 10, 2005)

Two things need to be clarified here.

1) The dollar is HKD, not USD. (7.78 HKD = 1 USD)

2) The GDP is the total GDP generated in the fourth quarter (Q4), not the entire year.

2006Q4 HK$400,292,000,000
2007Q4 HK$447,209,000,000
Simple math, the Q4 GDP growth in percentage = 11.7%.


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## Golden Loon (Mar 14, 2005)

shadyunltd said:


> Are you sure these are the real numbers? I mean, on Wikipedia, HK's GDP is around $300B (for 2007)...


this article was copied directly from Hong Kong government offical web site

these numbers generated in the fourth quarter only, not the whole year

Hong Kong’s GNP increased by around 11% in 2007 whole year


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## Whiteeclipse (Mar 31, 2005)

Skybean said:


> Incredible growth for a relatively small city. A surprising number of billionaires which likely inflate numbers quite a bit for the per capita figures. I hope HK continues its strong growth in years to come.


It's not incredible growth, it's more like expected growth. Hong Kong economy is based on on re-exports (from China) and providing all type of services for China so therefore without China Hong Kong is nothing.


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## hkskyline (Sep 13, 2002)

Whiteeclipse said:


> It's not incredible growth, it's more like expected growth. Hong Kong economy is based on on re-exports (from China) and providing all type of services for China so therefore without China Hong Kong is nothing.


That's the same concept for many export-oriented countries. The world economy is interconnected. That being said, GNP is a measure that includes locally-owned overseas production, so re-exports is not the full picture at all. Unless those re-exports are labelled 'Made in Hong Kong', which I doubt is common nowadays, they won't be included in this figure.


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## Golden Loon (Mar 14, 2005)

Whiteeclipse said:


> It's not incredible growth, it's more like expected growth. Hong Kong economy is based on on re-exports (from China) and providing all type of services for China so therefore without China Hong Kong is nothing.


the contribution of re-export in Hong Kong is becoming minor, the most important industry now in Hong Kong is financial industry and headquarters economy that all demand well-educated talants

Hong Kong’s financial industry increased by more than 30% in 2007


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## Golden Loon (Mar 14, 2005)

Whiteeclipse said:


> It's not incredible growth, it's more like expected growth. Hong Kong economy is based on on re-exports (from China) and providing all type of services for China so therefore without China Hong Kong is nothing.


moreover, your argument is just senseless and silly

you can also say "without USA New Yorkis nothing", "without Japan Tokyo is nothing", "without Europe and UK London is nothing"


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## CongTuSaiGon (Dec 31, 2006)

Whiteeclipse said:


> It's not incredible growth, it's more like expected growth. Hong Kong economy is based on on re-exports (from China) and providing all type of services for China so therefore without China Hong Kong is nothing.


China should re-orientate those exports to mainland port cities like Shanghai, Guangzhou or Xiamen to serve the Pearl River delta. 

I agree, without China's re-exporting industry, Hong Kong's economy will collapse.


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## Golden Loon (Mar 14, 2005)

CongTuSaiGon said:


> China should re-orientate those exports to mainland port cities like Shanghai, Guangzhou or Xiamen to serve the Pearl River delta.
> 
> I agree, without China's re-exporting industry, Hong Kong's economy will collapse.


you should study Hong Kong economy


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## Whiteeclipse (Mar 31, 2005)

Golden Loon said:


> moreover, your argument is just senseless and silly
> 
> you can also say "without USA New Yorkis nothing", "without Japan Tokyo is nothing", "without Europe and UK London is nothing"


Those are true statements that without USA New York is northing and without Japan Tokyo is nothing but those cities are part of those countries. You can't can't the same thing for Hong Kong for now, maybe in the future it will be different story.

Hong Kong is just lucky because of it's location, Hong Kong is a service economy and provides services to China.


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## Pax Sinica (Dec 10, 2005)

Golden Loon said:


> you should study Hong Kong economy


He probably doesn't know Hutchison Whampoa.:hahaha:


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## Pax Sinica (Dec 10, 2005)

Whiteeclipse said:


> Those are true statements that without USA New York is northing and without Japan Tokyo is nothing but those cities are part of those countries. You can't can't the same thing for Hong Kong for now, maybe in the future it will be different story.


Well, HK is now part of China under "1 country 2 systems".


Whiteeclipse said:


> Hong Kong is just lucky....


NY and Tokyo are all lucky, so whats the pt....


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## Golden Loon (Mar 14, 2005)

Whiteeclipse said:


> Those are true statements that without USA New York is northing and without Japan Tokyo is nothing but those cities are part of those countries. You can't can't the same thing for Hong Kong for now, maybe in the future it will be different story.
> 
> Hong Kong is just lucky because of it's location, Hong Kong is a service economy and provides services to China.


Hong Kong is part of China, I think it is just common sense

and do you know what is tautology? ya I know your mother is a woman, I don't need you to tell me


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## Golden Loon (Mar 14, 2005)

Pax Sinica said:


> He probably doesn't know Hutchison Whampoa.:hahaha:


you are right

London is the true global shipping center even it doesnt has a true seaport

in the global economy, physical sea port is no longer a must to develp a shipping center , London can generate more profits from providing high skilled service like law consulation, shipping finance, those white-collar officers in London's A-grade offices earning 10 times more than those seaport workers

Hong Kong is heading to this kinda shipping center


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## Golden Loon (Mar 14, 2005)

Hutchison Port Holdings (HPH) from Hong Kong is the world's biggest port investor, developer and operator that operates across Europe, the Americas, Asia, the Middle East and Africa. It operates in five of the seven busiest container ports in the world, handling 13% of the world’s container traffic.


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## CongTuSaiGon (Dec 31, 2006)

I'm sorry but Li Ka Shing's Hutchison Whampoa doesn't hold half the sky of the Hong Kong economy.


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## Golden Loon (Mar 14, 2005)

CongTuSaiGon said:


> I'm sorry but Li Ka Shing's Hutchison Whampoa doesn't hold half the sky of the Hong Kong economy.


you should admit that you don't know the Hong Kong economy much, otherwise you wont make this statement

"China should re-orientate those exports to mainland port cities like Shanghai, Guangzhou or Xiamen to serve the Pearl River delta. 

I agree, without China's re-exporting industry, Hong Kong's economy will collapse."


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## gladisimo (Dec 11, 2006)

Hong Kong does have a huge port, but that is already fading with the emergence of Shanghai, and more locally, Shenzhen, Ju Hai (spelling) are already eating up huge chunks of it.


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