Hong Kong's national income falls to $2.8t in 2020

The city’s wealth dropped 5% in 2020, the Census and Statistics Department reported.

Hong Kong posted a $2.8t gross national income (GNI) for the whole year of 2020, representing a 5% decline compared to the previous year.

The city’s gross domestic product, meanwhile, recorded $2.71t, resulting in a difference of $148.4b. The Census and Statistics Department (C&SD) noted this represents a net primary income inflow.

The C&SD said after netting out price changes, it showed that Hong Kong's GNI decreased by 5.8% in real terms in 2020 from 2019.

In the fourth quarter of 2020, GNI slipped 3.8% to $740.5b at current market prices, whilst GDP decreased 4.1% to $713.7b. Hong Kong’s fourth quarter GNI and GDP fell 3.6% and 3% in real terms, respectively.

Further, total primary income inflow was estimated at $1.53t whilst outflow was at $1.39t for the entire year.

Inflow in the fourth quarter was estimated at $346.4b, 48.8% of GDP in the same period. This is also lower by 8.4% compare to the previous year.

Total primary income outflow posted $321.6b, decreasing 9.3% from the fourth quarter of 2019.

The C&SD added that amongst the major components of the investment income inflow, the direct investment income this year fell slightly by 0.6% due to decrease in earnings of local enterprises from foreign direct investments.

Portfolio investment likewise recorded a decrease of 8.1%YOY largely due to a drop in interest income received by resident investors from non-resident debt securities.

Mainland China remains the largest source of Hong Kong’s total income inflow, accounting for 48.4%. It is followed by the British Virgin Islangs with 21.3%. These territories are also the most important destinations, in terms of income outflow.