Gross Domestic Product for the 2nd quarter of 2007

GDP by expenditure component for the second quarter of 2007

• In the second quarter of 2007, the Gross Domestic Product (GDP) increased by 6.9% in real terms over a year earlier, compared with the 5.7% growth in the first quarter.
• On a seasonally adjusted quarter-to-quarter comparison basis, GDP recorded an increase of 2.0% in real terms in the second quarter of 2007. 
• Analysed by major GDP component, private consumption expenditure (PCE) grew by 6.6% in real terms in the second quarter of 2007 over a year earlier, at a faster pace than the 5.3% growth in the first quarter.
• Government consumption expenditure (GCE) in national accounts terms increased by 2.8% in real terms in the second quarter of 2007 over a year earlier, compared with the 2.4% growth in the first quarter.
• Gross domestic fixed capital formation (GDFCF) grew by 11.1% in real terms in the second quarter of 2007, markedly faster than the 4.7% growth in the first quarter.
• Within the total GDFCF, expenditure on machinery, equipment and computer software recorded a double-digit growth of 13.1% in real terms in the second quarter of 2007 over a year earlier, compared with the 6.8% increase in the first quarter.
• Expenditure on building and construction increased moderately by 5.3% in real terms in the second quarter of 2007, reversing the 2.6% decline in the first quarter.
• Over the same period, expenditure on building and construction of the private sector increased by 7.8% in real terms while that of the public sector decreased by 2.1%.
• Total exports (comprising re-exports and domestic exports) increased by 11.3% in real terms in the second quarter of 2007 over a year earlier, after a rise of 8.2% in the first quarter. Imports of goods also grew by 12.9% in real terms in the second quarter of 2007.
• Exports of services increased by 10.9% in real terms in the second quarter of 2007 over a year earlier, compared with the 8.9% increase in the first quarter. Imports of services grew by 8.0% in real terms in the second quarter of 2007.
• The implicit price deflator (IPD) of GDP, as an overall measure of inflation in the economy, recorded a year-on-year increase of 0.7% in the second quarter of 2007, after an increase of 0.9% in the first quarter.  
• In the light of latest information available, the GDP real growth rate for the first quarter of 2007 was revised slightly upwards from 5.6% to 5.7%. 

GDP by economic activity for the first quarter of 2007

• The preliminary figures of GDP by economic activity at constant prices for the first quarter of 2007, which were released in end-June 2007, were revised as more data became available.
• The revised figures showed that net output in all the service activities taken together rose by 7.8% in real terms in the first quarter of 2007 over a year earlier, after the growth of 9.6% in the fourth quarter of 2006.
• Analysed by constituent sector and on a year-on-year comparison, net output in the wholesale, retail and import and export trades, restaurants and hotels sector increased by 7.9% in real terms in the first quarter of 2007 over a year earlier, compared with the 10.0% rise in the fourth quarter of 2006. The growth in local consumer demand, continued robust performance of external trade and expansion of both offshore trade and inbound tourism all contributed to the growth.
• Net output in the transport, storage and communications sector increased by 4.6% in real terms in the first quarter of 2007 over a year earlier, compared with the 9.4% rise in the fourth quarter of 2006. The robust external trade underpinned the growth in the transport and storage services.
• Net output in the financing, insurance, real estate and business services sector increased by 15.7% in real terms in the first quarter of 2007 over a year earlier, compared with the 17.4% increase in the fourth quarter of 2006. The growth impetus came mainly from the banking services. Also relevant was a leap in net output of the stock brokerage companies, underpinned by a significant increase in stock market turnover.
• Net output in the community, social and personal services sector increased by 1.1% in real terms in the first quarter of 2007 over a year earlier, compared with the 3.2% rise in the fourth quarter of 2006.
• Net output in the local manufacturing sector decreased by 1.5% in real terms in the first quarter of 2007 from a year earlier, compared with the decrease of 1.4% in the fourth quarter of 2006.
• Net output in the electricity, gas and water sector recorded an increase of 1.5% in real terms in the first quarter of 2007 over a year earlier, compared with the decrease of 4.0% in the fourth quarter of 2006.
• As for the construction sector, net output decreased by 5.7% in real terms in the first quarter of 2007 as compared with a year earlier, following the decrease of 3.1% in the fourth quarter of 2006.