XN000022-1994-03-31 — Page 12

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THURSDAY, MARCH 31, 1994

"FOR COMPILING GNP ESTIMATES FOR HONG KONG, IT IS NECESSARY TO HAVE DATA ON BOTH INCOME EARNED BY HONG KONG RESIDENTS FROM OUTSIDE HONG KONG AND INCOME EARNED BY NON-HONG KONG-RESIDENTS FROM WITHIN HONG KONG. GNP IS OBTAINED BY ADDING THE FORMER INCOME TO. AND SUBTRACTING THE LATTER INCOME FROM, GDP."

IN RECENT YEARS, THERE HAVE BEEN FAST-INCREASING INVESTMENTS IN HONG KONG MADE BY EXTERNAL INVESTORS AS WELL AS INVESTMENTS BY HONG KONG INVESTORS OUTSIDE THE TERRITORY, PARTICULARLY IN CHINA.

INCOME FLOWS GENERATED FROM SUCH INVESTMENTS ARE ACCORDINGLY GROWING FAST.

GNP STATISTICS EMBRACING THESE EXTERNAL INCOME FLOWS WILL THEREFORE PROVIDE A VERY USEFUL COMPLEMENTARY MEASURE OF HONG KONG'S OVERALL ECONOMIC ACTIVITY.

THE COMMISSIONER SAID: "BOTH GDP AND GNP ARE IMPORTANT ECONOMIC INDICATORS. THE PURPOSE OF COMPILING GNP IS NOT TO REPLACE GDP.

ΤΟ

DIFFERENT ECONOMIC ANALYSES,

MOST COUNTRIES/TERRITORIES COMPILE BOTH GDP AND GNP STATISTICS."

SUPPORT

REGARDING DATA COLLECTION, MR HO SAID: "WE HAVE NOW DECIDED THAT THE NECESSARY DATA NEEDED FOR COMPILING GNP STATISTICS WILL BE COLLECTED THROUGH STATISTICAL SURVEYS."

HE SAID THE CENSUS AND STATISTICS ORDINANCE WOULD PROVIDE THE LEGAL AUTHORITY FOR DATA COLLECTION AND THE ORDINANCE ALSO REQUIRED ALL DATA RELATING TO INDIVIDUAL ORGANISATIONS OR PERSONS ΤΟ BE KEPT STRICTLY CONFIDENTIAL.

THE TOTAL INCOME EARNED BY RESIDENTS FROM OUTSIDE HONG KONG INCLUDES TWO TYPES OF FACTOR INCOME: INVESTMENT INCOME AND LABOUR INCOME. CAPITAL GAINS ARE NOT INCLUDED.

SINCE EXTERNAL INVESTMENT TRANSACTIONS OF INDIVIDUALS ARE MAINLY CONDUCTED THROUGH FINANCIAL INSTITUTIONS, EFFORTS OF SURVEYS WILL BE FOCUSED ON INCOME FLOWS ROUTED THROUGH RELEVANT BUSINESS ESTABLISHMENTS.

THE SURVEY WILL COVER AROUND 12,000 COMPANIES IN VARIOUS KINDS OF BUSINESSES IN HONG KONG, INCLUDING FINANCIAL INSTITUTIONS, COMMERCIAL COMPANIES AND MANUFACTURING FIRMS.

INTERNATIONALLY ACCEPTED STATISTICAL STANDARDS WILL BE USED IN THE SURVEYS WITH REGARD TO DEFINITIONS OF INCOME FLOWS AND THE DELINEATION OF RESIDENTS AND NON-RESIDENTS.

IN

VARIOUS TECHNICAL MATTERS HAVE BEEN CAREFULLY CONSIDERED THE FEASIBILITY STUDY AND MR HO ASSURES THAT THE DATA REQUIRED FROM SURVEY RESPONDENTS WILL BE KEPT TO THE MINIMUM AND THE REQUIREMENTS WILL BE EXPLAINED CLEARLY TO THEM.

/THE COST