Hong Kong's constant price GDP rose 4.4% in 2003, exceeding the 3.5% rise in 2002, according to the Census & Statistics Department.

Measured in terms of constant prices, net output in all the service sectors taken together rose by 6.3% in real terms in the fourth quarter of 2003 over a year earlier, larger than the 4.7% increase in Q3.

Retail, hotels see 11.3% rise

Analysed by constituent sector and on a year-on-year comparison, net output in the wholesale, retail and import and export trades, restaurants and hotels surged by 11.3% in real terms in the 2003 Q4, faster than the 8.3% increase in Q3.

This was mainly attributable to a robust performance of Hong Kong's external trade. Also contributed was a visible pick-up in the retail trade, upon a notable growth in inbound tourism and improved local consumer sentiment. For 2003 as a whole, net output rose 10%.

Net output in financing, insurance, real estate and business services rose by 8.1% in 2003 Q4 over a year earlier, after an increase of 6.4% in Q3.

This was mainly attributable to continued growth in banking services on the back of a significant increase in commission and service income. Also relevant was a leap in net output of the stock brokerage companies, underpinned by an upsurge in stock market turnover in Q4. Net output grew 4.7% in 2003.

Services, utilities also see increases

Net output in transport, storage and communications increased 5.3% in real terms in the Q4 over a year earlier, faster than the 1.5% rise in Q3. For 2003 as a whole, net output grew 1.2%.

In the electricity, gas and water sector, net output rose by 4.3% in 2003 Q4 over 2002, following a 3.7% increase in Q3, reflecting increased electricity consumption for domestic and commercial uses, along with the pick-up in overall economic activity.

For 2003 as a whole, net output grew 2.3% in real terms, after a 3% increase in 2002.

Manufacturing sector's net output dropped 6.1%

Net output in the local manufacturing sector shrank further, by 6.1% in real terms in 2003 Q4 over a year earlier, compared with the 9.1% decline in Q3. The ongoing relocation of the local production processes outside Hong Kong largely contributed. For 2003 as a whole, net output fell 9.1% , after a 9.8% decline in 2002.

Net output in the construction sector declined by 6.5% in real terms in the 2003 Q4 over a year earlier, following a decrease of 2.9% in Q3, mainly due to a fall-off in private- sector building work. For 2003 as a whole, net output dropped 4.9 %, larger than the 0.8% fall in 2002.