Hong Kong recorded a $147.3 billion surplus in its balance of payment account, at 33.8% of GDP, in the fourth quarter last year, compared to $51.3 billion in the third quarter, the Census & Statistics Department says.

Of the major balance of payments components there was a current account surplus of $80.5 billion compared to $75.3 billion in the third quarter. A net inflow of financial non-reserve assets amounting to $73.9 billion was also recorded.

For 2008 as a whole there was a balance of payment surplus of $263.9 billion at 15.7% of GDP, compared to $114.5 billion in 2007.

Of the major balance of payments components Hong Kong recorded a current account surplus of $238.4 billion in 2008, up on the $199.2 billion figure in 2007. A net inflow of financial non-reserve assets amounting to $31.1 billion was recorded last year.

Beating the $47.7 billion figure for the same quarter in 2007 the current account surplus in the fourth quarter last year was characterised by a decrease in visible trade deficit, an increase in invisible trade surplus, an increase in net inflow of external factor income, and a continued net outflow of current transfers.

Capital transfers

A net inflow of capital transfers was estimated at $4.3 billion in the fourth quarter, as compared with a net inflow of $8.1 billion in the third quarter.

An overall net inflow of financial non-reserve assets amounting to $73.9 billion was recorded in the fourth quarter, against a net outflow of $49.2 billion in the third quarter.

The overall net inflow of financial non-reserve assets in the fourth quarter was the combined result of a net inflow of direct investment, a net outflow of portfolio investment, a net inflow due to cash settlement of financial derivatives, and a net inflow of other investment.

External debt

At the end of December Hong Kong's gross external debt, measuring total outstanding gross external liabilities other than equity liabilities, amounted to $5.115 trillion, equivalent to 305% of GDP.

Compared with the end of September, gross external debt fell by $148.5 billion. This was mainly attributable to the decreases in external debt of other sectors, the banking sector and the Monetary Authority, which were larger than the increases in direct investment debt liabilities (inter-company lending) and external debt of the Government.