ENG-2000 — Page 539

APPENDICES

APPENDIX 7

(Chapter 4: The Economy)

Hong Kong's Balance of Payments Account

$ Million

Standard Components

1998

1999 *

2000 *

Current Account (1)

30,238

89,066

68,636

Goods

-60,667

-24,501

-64,021

Services

74,507

90,733

123,828

Income

28,762

34,777

21,540

Current transfers

-12,364

-11,943

-12,712

Capital and Financial Account (1)

-31,514

-83,374

-59,369

Capital and financial non-reserve assets (net change) (2)

--84,094

-5,507

17,429

Capital transfers

-18,445

-13,812

-11,829

Financial non-reserve assets (net change)(2)

-65,649

8,305

29,257

Direct investment

-17,016

40,737

11,005

Portfolio investment

171,052

256,812

226,852

Financial derivatives

Other investment

Reserve assets (net change)(2) Net errors and omissions (3)

25,374

78,999

--4,648

-245,059

-368,243

-203,952

52,581

-77,867

-76,798

1,276

-5,692

-9,267

Overall Balance of Payments

-52,581

77,867

76,798

(in surplus)

(in deficit)

(in surplus)

Notes: (1) In accordance with the Balance of Payments accounting rules, a positive value for the balance figure in the current account represents a surplus whereas a negative value represents a deficit. For the capital and financial account, a positive value indicates a net capital and financial inflow and a negative value indicates a net outflow. As increases in external assets are debit entries and decreases are credit entries, a negative value for net change in reserve assets represents a net increase and a positive value represents a net decrease.

Source:

(2) The estimates on net change in reserve and non-reserve assets under the Balance of Payments framework are transaction figures. Effects

from valuation changes (including price changes and exchange rate changes) and reclassifications are excluded.

(3) In principle, the net sum of credit entries and debit entries is zero. In practice, discrepancies between the credit and debit entries may however occur for various reasons as the data are collected from many sources. Equality between the sum of credit entries and debit entries is brought about by the inclusion of a balancing item which reflects net errors and omissions.

Figures are subject to revisions later on.

Balance of Payments Branch (1), Census and Statistics Department (Enquiry Telephone No.: 2116 8677)

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