Hong Kong's gross national product dropped to $414.2 billion in the second quarter, down 2.2% on the same period a year earlier, the Census & Statistics Department says. Gross domestic product fell 2.2% to $392.7 billion.

Compared with GDP, the value of Hong Kong's GNP was larger by $21.5 billion, representing a net external factor income inflow of the same amount, and equivalent to 5.5% of GDP in that quarter.

After netting out the effect of price changes, Hong Kong's GNP fell 3.7% in real terms compared to the corresponding drop of 3.8% recorded for GDP.

Total factor income inflow into Hong Kong, estimated at $215.1 billion and equivalent to 54.8% of GDP, dropped 18.7%. Total factor income outflow, estimated at $193.6 billion and equivalent to 49.3% of GDP, recorded a fall of 20.2%. Taking the inflow and outflow together, a net external factor income inflow of $21.5 billion was recorded.

Within total factor income inflow, direct investment income fell 13.1% over a year earlier. Portfolio investment income dropped 13.2% while other investment income decreased 65.1%.

Direct investment income dips

Within total factor income outflow, direct investment income dropped 16.3% over a year earlier. Portfolio investment income fell 12.3% while other investment income dropped 60.8%.

The Mainland continued to be the largest source of Hong Kong's external factor income inflow, accounting for 40.3%. The British Virgin Islands came next with a share of 29.6%.