ENG-2016 — Page 66

Chart 2

3

The Economy

Gross Domestic Product

Index (1995 = 100)

250

Real GDP (left scale)

US$

45,000

Per capita GDP at current market prices (right scale)

40,000

35,000

200

30,000

25,000

150

20,000

15,000

100-

:

10,000

- 5,000

50

0

1996 1998 2000

2002 2004 2006 2008 2010

2012 2014 2016

Over the past two decades, the Hong Kong economy grew an average

of 3.3 per cent in real terms, consistently faster than most high-income economies.

The stock of direct investment liabilities in Hong Kong was enormous, at $13,697 billion in market value at the end of 2015, equivalent to 571 per cent of GDP. It served as another vivid manifestation of Hong Kong's increasing international focus. The territory is among the most preferred destinations for inward direct investment, ranked second in the world after only the US by the United Nations' World Investment Report 2016.

The corresponding figures for Hong Kong's stock of direct investment assets were likewise huge, at $13,231 billion, or 552 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 $35,497 billion and $26,342 billion respectively at the end of 2016. The corresponding ratios to GDP in 2016 were 1,426 per cent and 1,058 per cent. Reflecting Hong Kong's robust international investment position, its net external financial assets amounted to $9,155 billion at the end of 2016, equivalent to 368 per cent of GDP.

The Gross National Income (GNI), comprising GDP and net external primary income flow, stood at $2,573 billion in 2016. This was higher than the corresponding GDP by 3.4 per cent. The difference represented a net inflow of external primary income. In gross terms, inflows and outflows of external primary income remained substantial in 2016, at $1,264 billion and $1,180 billion respectively, equivalent to 51 per cent and 47 per cent of GDP respectively. This was attributable to the huge volumes of Hong Kong's inward and outward investment.

Contributions of Various Economic Sectors

Primary production, including agriculture, fisheries, mining and quarrying, is insignificant in terms of both value-added contribution to GDP and share in total employment, as Hong Kong is a predominantly city economy.

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