ENG-2008 — Page 525

Table 3

(Chapter 3: The Economy)

Balance of Payments Account(1)

Appendices ❘ 445

HK$ Billion

2003

2007

2008@

Current Account Balance(2)

Balance on goods

128.2

199.2

238.4

-45.0

-153.7

-180.1

Balance on services

Net income flow

159.0

328.5

362.6

28.5

44.4

81.4

Net flow in current transfers

-14.3

-20.1

-25.5

Capital and Financial Account Balance(2)

-179.1

-259.2

-215.8

Net flow in capital transfers

-8.3

10.3

16.9

Net change(3) in financial non-reserve assets

-163.2

-155.1

31.1

Direct investment

63.4

-52.6

23.9

Portfolio investment

-264.6

-21.5

-292.5

Financial derivatives

78.3

43.5

63.6

Other investment

Net change(3) in reserve assets

-40.2

-124.6

236.1

-7.6

-114.5

-263.9

Net Errors and Omissions(4)

Overall Balance of Payments

50.8

60.1

-22.6

7.6

114.5

263.9

(in surplus) (in surplus) (in surplus)

Notes: For details, please refer to the pamphlet series on Balance of Payments Statistics available on the Census

and Statistics Department's website (www.censtatd.gov.hk/products_and_services/products/publications/ free_reference_materials/index.jsp).

(1) A Balance of Payments (BOP) account is a statistical statement that systematically summarises, for a specific time period, the economic transactions of an economy with the rest of the world. A complete BoP account comprises (a) current account; and (b) capital and financial account.

(2) In accordance with the BOP 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.

(3) The estimates on net change in reserve and non-reserve assets under the BOP framework are transaction figures. Effects from valuation changes (including price changes and exchange rate changes) and reclassifications are excluded.

(4) 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 different 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".

Source: Balance of Payments Branch (1), Census and Statistics Department.

(Enquiry Telephone No.: 2116 8677)

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