Hong Kong recorded a $13.2 billion surplus in its balance of payments account, at 3.5% of GDP, in this year's third quarter, compared with a $10.1 billion surplus in the second, the Census & Statistics Department says. Reserve assets correspondingly grew by the same amount.

Of the major balance of payments components, there was a current account surplus of $51.2 billion in the third quarter, up on the $15 billion recorded in the second. A net outflow of financial non-reserve assets amounting to $45.2 billion was recorded in the third quarter, up on $16.8 billion in the second.

The current account recorded a surplus of $51.2 billion in the third quarter, up on the $35.9 billion in the third quarter last year.

Trade surplus

With imports of goods increasing faster than exports, the visible trade deficit grew to $18.6 billion in the third quarter, from $6.9 billion in the same quarter last year. The invisible trade surplus rose to $74.1 billion in the third quarter, from $60.7 billion in the same quarter last year, with exports of services having increased more than imports of services.

Overall, a combined visible and invisible trade surplus of $55.5 billion was recorded in the third quarter, larger than the $53.7 billion in the same quarter last year.

External factor income inflow and outflow amounted to $158.2 billion and $158 billion respectively in the third quarter, yielding a net inflow of $200 million.

A current transfer outflow of $6.5 billion and an inflow of $2 billion were recorded in the third quarter, resulting in a net outflow of $4.5 billion that quarter, slightly larger than the $4.2 billion recorded in the same quarter in 2005.

Visible trade deficit

Comparing the third quarter with the second quarter, the visible trade deficit dropped from $35.4 billion to $18.6 billion, while the invisible trade surplus rose from $61.8 billion to $74.1 billion. Concurrently, the external factor income shifted from a net outflow of $7.6 billion to a net inflow of $200 million, while the net outflow of current transfers increased from $3.8 billion to $4.5 billion.

In the third quarter, a net outflow of capital transfers was estimated at $1.7 billion, as against a net inflow of $500 million in the second quarter.

An overall net outflow of financial non-reserve assets amounting to $45.2 billion was recorded in the third quarter, larger than that of $16.8 billion in the second quarter.

Reserve assets up

In the third quarter, reserve assets rose $13.2 billion, compared with an increase of $10.1 billion in the second quarter. The accumulation in reserve assets was mainly due to income from foreign currency assets during the quarter.

At the end of September, Hong Kong's gross external debts amounted to $3.82 trillion, equivalent to 264% of GDP.

Compared with the end of June, gross external debts rose $147.2 billion. This was mainly attributable to the increases in external debts of the banking sector, the Monetary Authority and the Government.