HK's balance of payments sees 13.2 bln HKD surplus in Q3

Hong Kong recorded a 13.2 billion HK dollars (1.69 billion U.S. dollars) surplus in its balance of payments account, or 3.5 percent of GDP, in the third quarter of 2006, the Census and Statistics Department said Thursday.

Of the major balance of payments components, there was a current account surplus of 51.2 billion HK dollars (6.56 billion U. S. dollars) in the third quarter, up from the 15 billion HK dollars (1.92 billion U.S. dollars) recorded in the second quarter.

A net outflow of financial non-reserve assets amounting to 45.2 billion HK dollars (5.79 billion U.S. dollars) was recorded in the third quarter, up from 16.8 billion HK dollars (2.15 billion U.S. dollars) in the second.

With imports of goods increasing faster than exports, the visible trade deficit grew to 18.6 billion HK dollars (2.38 billion U.S. dollars) in the third quarter, up from 6.9 billion HK dollars (884.62 million U.S. dollars) in the same quarter last year.

The invisible trade surplus rose to 74.1 billion HK dollars (9. 5 billion U.S. dollars) in the third quarter, up from 60.7 billion HK dollars (7.78 billion U.S. dollars) 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 HK dollars (7.12 billion U.S. dollars) was recorded in the third quarter, larger than the 53.7 billion HK dollars (6.88 billion U.S. dollars) in the same quarter last year.

External factor income inflow and outflow amounted to 158.2 billion HK dollars (20.28 billion U.S. dollars) and 158 billion HK dollars (20.26 billion U.S. dollars) respectively in the third quarter.

A current transfer outflow of 6.5 billion HK dollars (833.33 million U.S. dollars) and an inflow of 2 billion HK dollars (256. 41 million U.S. dollars) were recorded in the third quarter, resulting in a net outflow of 4.5 billion HK dollars (576.92 million U.S. dollars) that quarter, slightly larger than the 4.2 billion HK dollars (538.46 million U.S. dollars) recorded in the same quarter in 2005.

Comparing the third quarter with the second quarter, the visible trade deficit dropped from 35.4 billion HK dollars (4.54 billion U.S. dollars) to 18.6 billion HK dollars (2.38 billion U.S. dollars), while the invisible trade surplus rose from 61.8 billion HK dollars (7.92 billion U.S. dollars) to 74.1 billion HK dollars (9.5 billion U.S. dollars).

Concurrently, the external factor income shifted from a net outflow of 7.6 billion HK dollars (974.36 million U.S. dollars) to a net inflow of 200 million HK dollars (25.64 million U.S. dollars) , while the net outflow of current transfers increased from 3.8 billion HK dollars (487.18 billion U.S. dollars) to 4.5 billion HK dollars (576.92 billion U.S. dollars).

In the third quarter, reserve assets rose 13.2 billion HK dollars (1.69 billion U.S. dollars), compared with an increase of 10.1 billion HK dollars (1.29 billion U.S. dollars) 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 HK dollars (489.74 billion U.S. dollars), equivalent to 264 percent of GDP.

Compared with the end of June, gross external debts rose 147.2 billion HK dollars (18.87 billion U.S. dollars). This was mainly attributable to the increases in external debts of the banking sector, the Monetary Authority and the government.

Source: Xinhua