XN000022-1994-03-31 — Page 11

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THURSDAY, MARCH 31, 1994

GOVT DECIDES TO COMPILE

GROSS NATIONAL PRODUCT STATISTICS FOR HONG KONG

THE GOVERNMENT HAS DECIDED TO SET UP A SYSTEM GROSS NATIONAL PRODUCT (GNP) STATISTICS FOR HONG KONG,

то COMPILE

GROSS DOMESTIC PRODUCT (GDP) STATISTICS HAVE ALREADY BEEN AVAILABLE FOR MANY YEARS.

THE MOVE ΤΟ EXTEND THE STATISTICAL SYSTEM ΤΟ COVER GNP STATISTICS IS TO MEET A GROWING NEED FOR SUCH DATA TO ANALYSE THE HONG KONG ECONOMY.

THIS SHOULD ENABLE BOTH THE GOVERNMENT AND THE BUSINESS COMMUNITY TO GAIN A BETTER UNDERSTANDING OF HONG KONG'S ECONOMIC GROWTH AND DEVELOPMENT.

IN JUNE 1992, THE EXECUTIVE COUNCIL ASKED THE CENSUS AND STATISTICS DEPARTMENT TO CONDUCT A FEASIBILITY STUDY ON THE COMPILATION OF GNP STATISTICS FOR HONG KONG.

"THE STUDY HAS BEEN COMPLETED AND ON THE BASIS OF ITS RESULTS, EXECUTIVE COUNCIL DIRECTED THAT THE DEPARTMENT SHOULD PROCEED WITH WORK FOR THE SETTING UP OF THE STATISTICAL SYSTEM, SAID COMMISSIONER FOR CENSUS AND STATISTICS MR FREDERICK HO.

COST

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THE MINIMUM-

"THE FEASIBILITY STUDY WAS ALSO TO ESTABLISH APPROACH, WHEREBY COSTS IN TERMS OF DATA COLLECTION EFFORTS ON THE PART OF THE GOVERNMENT AND REPORTING BURDEN ON PROSPECTIVE DATA SUPPLIERS WILL BE MINIMISED, HE ADDED.

"

STAFF OF THE CENSUS AND STATISTICS DEPARTMENT CARRIED OUT THE NECESSARY RESEARCH, CONSULTED INTERNATIONAL EXPERTS AND INTERVIEWED A LARGE NUMBER OF LOCAL ORGANISATIONS DURING FEASIBILITY STUDY.

THE

MR HO EXPLAINED: "FOR A REFERENCE PERIOD, GDP MEASURES THE TOTAL VALUE OF PRODUCTION WITHIN THE BOUNDARY OF AN ECONOMIC TERRITORY. CONCURRENTLY, IT MEASURES THE INCOME ARISING FROM SUCH PRODUCTION.

"ON THE OTHER HAND, GNP MEASURES THE TOTAL INCOME OF RESIDENTS OF A TERRITORY, IRRESPECTIVE OF WHETHER THE INCOME IS EARNED FROM INVESTMENT AND EMPLOYMENT WITHIN THE TERRITORY OR OUTSIDE.

"RESIDENTS OF A TERRITORY INCLUDE INDIVIDUALS AND ORGANISATIONS. FOR INDIVIDUALS, RESIDENTS REFER TO THOSE WHO NORMALLY STAY IN THE TERRITORY, IRRESPECTIVE OF THEIR NATIONALITIES. FOR ORGANISATIONS, RESIDENTS REFER TO THOSE WHICH ORDINARILY OPERATE IN THE TERRITORY. CONCEPTUALLY, THE RESIDENCE STATUS OF INDIVIDUALS ORGANISATIONS DEPEND ON THEIR CENTRE OF ECONOMIC INTEREST.

AND

:

/"FOR COMPILING