XN000022-1996-08-16 — Page 6

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"When a longer time series of GNP is available, it will become a useful explanatory variable in studies on various income related economic phenomena such as consumption demand, investment intention and inflation," said the Commissioner for Census and Statistics, Mr Frederick Ho.

With reference to the estimated mid-year population of Hong Kong in 1994, per capita GNP for that year was $168,353. The corresponding figure for per capita GDP was $167,055.

Based on the latest results of the survey of external factor income flows, which is the main source of data for compilation of GNP, total factor income inflow into Hong Kong in 1994 was $374 billion (or 36.9% of GDP), representing an increase of 18.1% in nominal terms over 1993, while total factor income outflow in 1994 was $366.1 billion (or 36.2% of GDP), representing an increase of 19.5% in nominal

terms.

"The fast increase in income inflow and outflow reflects the ever increasing economic linkage between Hong Kong and the rest of the world," said Mr Ho.

Of total income earned in 1994 by Hong Kong residents from outside the territory, direct investment income (DII) accounted for 30.5% (or $114 billion), portfolio investment income (PII) for 17.9% (or $67 billion), other investment income (OII) for 51.6% (or $192.9 billion) and compensation of employees (CE) for 0.04%.

Of total income earned in 1994 by non-Hong Kong residents from within the territory, DII accounted for 46.2% (or $169.2 billion), PII for 6.1% (or $22.3 billion), OII for 47.7% (or $174.6 billion) and CE for 0.04%.

"The above estimates of GNP and external factor income flows for 1994 are only preliminary figures based on survey results obtained so far. Minor revision is expected in due course and final figures for 1994 will be available by March 1997," Mr Ho said.

With a view to strengthening Hong Kong's position as an international financial centre with a high degree of transparency, and enhancing such image, the Government is considering to compile a complete BoP account for Hong Kong, and it has been decided that an investigatory study will be launched very soon to establish methods for the compilation.

"For many years. Hong Kong has been compiling statistics on external transactions of goods and services, and from 1993 statistics on external factor income flows.