A surplus of $230.6 billion was recorded in Hong Kong's balance of payments account in 2009's fourth quarter, the Census & Statistics Department said today.

For the year as a whole, a surplus of $549.3 billion was recorded, representing 33.6% of GDP.

Overall situation

Of the major balance of payments components, there was a current account surplus of $36.6 billion in the fourth quarter, $13.1 billion higher than the third quarter.

A net inflow of financial non-reserve assets amounting to $192.5 billion was also recorded.

For 2009, a current account surplus of $142.6 billion was recorded, down on 2008 which recorded $228.1 billion.

A net inflow of financial non-reserve assets amounting to $348.2 billion was recorded, exceeding that recorded for 2008 which saw a net inflow of $16.3 billion.

Current account

The current account recorded a surplus of $36.6 billion in the fourth quarter, down on the $85.7 billion seen a year earlier. The surplus was characterised by a rise in the visible trade deficit, a rise in the invisible trade surplus, a fall in the net inflow of external factor income, and a continued net outflow of current transfers.

For 2009 as a whole, the current account surplus was $142.6 billion, down on the $228.1 billion seen in 2008.

The department explained this was the result of an increase in visible trade deficit, a decrease in invisible trade surplus, and a fall in net inflow of external factor income, slightly offset by a fall in the net outflow of current transfers.

Capital, financial account

In the fourth quarter, the net inflow of capital transfers was estimated at $9.5 billion, down on the net inflow of $12.3 billion in the previous quarter.

An overall net inflow of financial non-reserve assets amounting to $192.5 billion was recorded in the fourth quarter, compared with a net inflow of $52.2 billion in the third quarter.

Reserve assets grew by $230.6 billion in the fourth quarter, compared with an increase of $106.6 billion in the third quarter. This was caused by the purchases of foreign currencies with Hong Kong dollars and income from foreign currency assets.

For 2009 as a whole, a net inflow of capital transfers was estimated at $36.2 billion, compared with a net inflow of $16.4 billion in 2008. An overall net inflow of financial non-reserve assets amounting to $348.2 billion was recorded.

The department said this was the result of a net inflow caused by the cash settlement of financial derivatives and a net inflow of other investment, partly offset by a net outflow of direct investment and a net outflow of portfolio investment.

Reserve assets increased by $549.3 billion in 2009, compared with an accumulation of $263.9 billion in 2008.

External debt

Hong Kong's gross external debt amounted to $5.2196 trillion at the end of the fourth quarter, up $109.6 billion on the previous quarter.

This was mainly due to the increases in the external debt of the banking sector, direct investment debt liabilities (inter-company lending) and the external debt of the Hong Kong Monetary Authority.

A major proportion of the external debt was attributable to the banking sector, accounting for 74% at the end of the fourth quarter.