Hong Kong – Hong Kong’s Gross National Income and external primary income flows for the first quarter of 2024
Hong Kong’s Gross National Income and external primary income flows for the first quarter of 2024
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The Census and Statistics Department (C&SD) released today (June 17) the preliminary statistics on Hong Kong’s Gross National Income (GNI) and related figures for the first quarter of 2024.
Hong Kong’s GNI, which denotes the total income earned by Hong Kong residents from engaging in various economic activities, increased by 9.6% in the first quarter of 2024 over a year earlier to $831.0 billion at current market prices. The Gross Domestic Product (GDP), estimated at $769.7 billion at current market prices in the same quarter, recorded a 7.1% increase over a year earlier. The value of GNI was larger than GDP by $61.3 billion in the first quarter of 2024, which was equivalent to 8.0% 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 6.3% in real terms in the first quarter of 2024 over a year earlier. The corresponding GDP in the same quarter increased by 2.7% in real terms.
Hong Kong’s total inflow of primary income, which mainly comprises investment income, estimated at $494.9 billion in the first quarter of 2024 and equivalent to 64.3% of GDP in that quarter, recorded a significant increase of 14.0% over a year earlier. Meanwhile, total primary income outflow, estimated at $433.6 billion in the first quarter of 2024 and equivalent to 56.3% of GDP in that quarter, also increased by 9.9% over a year earlier.
As for the major components of investment income inflow, direct investment income (DII) increased by 6.1% 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 20.1% 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 4.3% over a year earlier, mainly due to the increase in earnings of some prominent multinational enterprises from their direct investment in Hong Kong. PII increased by 8.8%, mainly attributable to the increase in interest payout to non-resident investors from their holdings of resident debt 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 first quarter of 2024, accounting for 40.5%. This was followed by the British Virgin Islands (BVI), with a share of 15.3%. Regarding total primary income outflow, the mainland of China and the BVI remained the most important destinations in the first quarter of 2024, accounting for 30.9% and 19.6% 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 second quarter of 2022 to the first quarter of 2024 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 2022 onwards and primary income flows from 2023 onwards are subject to revision when more data are incorporated.
More detailed statistics are given in the report “Gross National Income and External Primary Income Flows, First Quarter 2024”. Users can browse and download this publication at the website of the C&SD (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1040005&scode=250).
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).
As per Reserve Bank of India (RBI) data, recovery made by public sector banks (PSBs) during the financial year as a percentage of gross non-performing assets (NPAs) as on beginning of the financial year (FY) has improved from 11.33% in FY2017-18, to 13.52% in FY2018-19, to 14.69% in FY2019-20. This was stated by Union Minister of State for Finance Dr Bhagwat Kisanrao Karad in a written reply to a question in Lok Sabha today.
In FY2020-21, the Minister stated, despite widespread impact of the COVID-19 pandemic on the economy and its cascading effect on the actions in respect of recovery measures, the recovery during the financial year as a percentage of gross NPA as on beginning of the financial year was still at 12.28%.
On the steps taken by the Government for loan recovery from the wilful defaulters, the Minister stated that as per the inputs received from the Enforcement Directorate, it has attached assets worth Rs. 19,111 crore, up to 23.3.2022, under the provisions of Prevention of Money Laundering Act, 2002 in certain cases of loan fugitives, which is 84.61% of the defrauded amount of Rs. 22,586 crore in these cases. Further, out of these attached assets, assets worth Rs. 15,113 crore, which is 66.91% of the defrauded amount, has been restituted to PSBs.
Giving more information with regard to loan recovery from the wilful defaulters, the Minister stated that as per RBI’s Master Circular on Wilful Defaulters, dated 1.7.2015, banks are required to take steps to initiate the legal process, wherever warranted, against the borrowers/ guarantors for recovery of dues. Further, they may also initiate criminal proceedings against wilful defaulters, wherever necessary. In line with these instructions, banks initiate recovery process under various recovery mechanisms, such as filing of a suit in civil courts or in the Debts Recovery Tribunals, action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, filing of cases in the National Company Law Tribunal under the Insolvency and Bankruptcy Code, 2016, and through sale of NPAs.
Moreover, the Minister stated, to deter wilful defaulters, as per RBI’s instructions, wilful defaulters are not sanctioned any additional facilities by banks, non-banking financial companies (NBFCs) or financial institutions, and their unit is debarred from floating new ventures for five years. Further, vide Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) (Second Amendment) Regulations, 2016, wilful defaulters and companies with wilful defaulters as promoters/ directors have been debarred from accessing capital markets to raise funds. In addition, the Insolvency and Bankruptcy Code, 2016 has debarred wilful defaulters from participating in the insolvency resolution process.
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RM/KMN
Gross non-performing assets (NPAs) improves from 11.33% in FY2017-18, to 13.52% in FY2018-19, to 14.69% in FY2019-20
(Release ID: 1810598)
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