ENG-2009 — Page 86

42 The Economy

ratio will be even greater, at 380 per cent in 2009, compared to 249 per cent in 1989 and 251 per cent in 1999.

Chart 2

Gross Domestic Product

Index (1989 = 100)

US$ ('000)

250

35

Real GDP (left scale)

Per capita GDP at current market prices (right scale)

30

200

150

100

595

50

5

25

20

15

10

1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009

Over the past two decades, the Hong Kong economy grew by an average of 3.8 per cent in real terms, outpacing the 3.2 per cent growth for the world economy. Hong Kong's per capita GDP is among the highest in Asia.

The stock of inward direct investment in Hong Kong was significant, at $7,074 billion in market value at the end of 2009, equivalent to 433 per cent of GDP. It served as another strong indicator of Hong Kong's increasingly international focus. Hong Kong is among the most preferred destinations for inward direct

investment in Asia.

The corresponding figures for Hong Kong's stock of outward direct investment were likewise huge, at $6,469 billion and 396 per cent of GDP. As an international financial centre with huge cross-territory fund flows, Hong Kong's external financial assets and liabilities were also substantial, at $19,813 billion and $14,044 billion respectively at the end of 2009. The corresponding ratios to GDP in that year were 1 213 per cent and 860 per cent. Reflecting Hong Kong's sound international investment position, its net external assets rose to $5,768 billion at the end of 2009, equivalent to 353 per cent of GDP.

The Gross National Product (GNP), comprising GDP and net external factor income flows, stood at $1,682.9 billion in 2009. This was higher than the corresponding GDP by 3 per cent. The difference represented a net inflow of external factor income. In gross terms, inflows and outflows of external factor income remained substantial in 2009, at $791.5 billion and $742.1 billion respectively, equivalent to 48 per cent and 45 per cent of GDP respectively. This was related to the huge volume of both inward and outward investment in Hong Kong.