Hong Kong’s Gross National Income and external primary income flows for the second quarter of 2021

     The Census and Statistics Department (C&SD) released today (September 14) the preliminary statistics on Hong Kong's Gross National Income (GNI) and related figures for the second quarter of 2021.

     Hong Kong’s GNI, which denotes the total income earned by Hong Kong residents from engaging in various economic activities, increased by 10.1% in the second quarter of 2021 over a year earlier to $760.3 billion at current market prices. The Gross Domestic Product (GDP), estimated at $676.2 billion at current market prices in the same quarter, recorded a 7.3% increase over the same period. The value of GNI was larger than GDP by $84.2 billion in the second quarter of 2021, which was equivalent to 12.4% of GDP in that 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 increased by 11.3% in real terms in the second quarter of 2021 over a year earlier. The corresponding GDP in the same quarter increased by 7.6% in real terms.

     Hong Kong’s total inflow of primary income, which mainly comprises investment income, estimated at $478.7 billion in the second quarter of 2021 and equivalent to 70.8% of GDP in that quarter, recorded an increase of 8.2% over a year earlier.  Meanwhile, total primary income outflow, estimated at $394.5 billion in the second quarter of 2021 and equivalent to 58.3% of GDP in that quarter, also increased by 3.4% over a year earlier.

     As for the major components of investment income inflow, direct investment income (DII) increased by 7.5% 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 23.2% over a year earlier, mainly attributable to the increase in dividend income received by resident investors from their holdings of non-resident equity securities.

     Regarding the major components of investment income outflow, DII increased by 10.2% over a year earlier, mainly due to the increase in earnings of some prominent multinational enterprises from their direct investment in Hong Kong. PII decreased by 7.5%, mainly attributable to the decrease in dividend payout to non-resident investors from their holdings of resident equity securities.

     Analysed by country/territory, the mainland of China continued to be the largest source of Hong Kong's total primary income inflow in the second quarter of 2021, accounting for 44.4%. This was followed by the British Virgin Islands (BVI), with a share of 18.4%. Regarding total primary income outflow, the mainland of China and the BVI remained the most important destinations in the second quarter of 2021, accounting for 26.6% and 25.0% respectively.

Further Information

     GDP and GNI are closely related indicators for measuring economic performance. GDP is a measure of the total value of production of all resident producing units of an economy. GNI denotes the total income earned by residents of an economy from engaging in various economic activities, irrespective of whether the economic activities are carried out within the economic territory of the economy or outside.  

     Figures of GNI and primary income flows analysed by income component from the third quarter of 2019 to the second quarter of 2021 are presented in Table A, while selected major country/territory breakdowns of primary income inflow and outflow for the same quarters are presented in Tables B(1) and B(2) respectively.

     Statistics on GDP and GNI from 2019 onwards and primary income flows from 2020 onwards are subject to revision when more data become available.

     For enquiries about GNI and related statistics, please contact the Balance of Payments Branch (2) of the C&SD (Tel: 3903 7054 or email: gni@censtatd.gov.hk).