HK's balance of payments surplus hits 18.4 billion HK dollars in Q4 of 2004

Hong Kong's balance of payments account reverted to a surplus of 18.4 billion Hong Kong dollars (2.36 billion US dollars), at 5.4 percent of GDP, in last year's fourth quarter from a deficit of 20.5 billion Hong Kong dollars in the third.

The whole year saw a surplus of 25.5 billion Hong Kong dollars of balance of payments, at 2 percent of GDP, as compared with the 7.6 billion Hong Kong dollars surplus in 2003.

Hong Kong's Census and Statistics Department said on Thursday the switch-back was mainly due to distinct reversals to net inflow in both portfolio and direct investment, on the back of accelerated funds inflow into the local stock market and persistently hefty inward direct investment amid the sanguine local economic environment during the quarter.

The current account surplus remained sizable thanks to buoyant export performance, with the increase in overall trade surplus largely offsetting the decline in net external factor income inflow, said the department.

Source: Xinhua