Financial results for six months ended September 30, 2024
The Government announced today (October 31) its financial results for the six months ended September 30, 2024.
Expenditure and revenue from April to September 2024 amounted to HK$360.7 billion and HK$117.6 billion respectively, resulting in a deficit of HK$226 billion after taking into account HK$24.9 billion received from issuance of Government Bonds and repayment of HK$7.8 billion principal on Government Bonds.
A Government spokesperson said that the deficit for the period was mainly due to the fact that some major types of revenue including salaries and profits taxes are mostly received towards the end of a financial year.
The fiscal reserves stood at HK$508.6 billion as at September 30, 2024.
Detailed figures are shown in Tables 1 and 2.
TABLE 1. CONSOLIDATED ACCOUNT (Note 1)
Month ended
September 30, 2024
HK$ million |
Six months ended
September 30, 2024
HK$ million |
Revenue |
15,745.8 |
117,613.3 |
Expenditure |
(57,883.3) |
(360,684.2) |
Deficit before issuance
and repayment of
Government Bonds |
(42,137.5) |
(243,070.9) |
Proceeds received from
issuance of
Government Bonds |
- |
24,880.4 |
Repayment of
Government Bonds |
- |
(7,800.5) |
Deficit after issuance
and repayment of
Government Bonds |
(42,137.5) |
(225,991.0) |
Financing |
Domestic |
Banking Sector (Note 2) |
41,053.1 |
222,001.8 |
Non-Banking Sector |
1,084.4 |
3,989.2 |
External |
- |
- |
Total |
42,137.5 |
225,991.0 |
Government Debts as at September 30, 2024 (Note 3)
HK$211,858 million
Debts Guaranteed by Government as at September 30, 2024 (Note 4)
HK$137,536 million
TABLE 2. FISCAL RESERVES
Month ended
September 30, 2024
HK$ million |
Six months ended
September 30, 2024
HK$ million |
Fiscal Reserves at start of period |
550,731.9 |
734,585.4 |
Consolidated Deficit after
issuance and repayment of
Government Bonds |
(42,137.5) |
(225,991.0) |
Fiscal Reserves at end of period
(Note 5) |
508,594.4 |
508,594.4 |
Notes:
1. This Account consolidates the General Revenue Account and the following eight Funds: Capital Works Reserve Fund, Capital Investment Fund, Civil Service Pension Reserve Fund, Disaster Relief Fund, Innovation and Technology Fund, Land Fund, Loan Fund and Lotteries Fund. It excludes the Bond Fund, the balance of which is not part of the fiscal reserves. The Bond Fund balance as at September 30, 2024, was HK$222,511 million.
2. Includes transactions with the Exchange Fund and resident banks.
3. These were the Green Bonds (equivalent to HK$211,858 million as at September 30, 2024) issued under the Government Green Bond Programme. They were denominated in US dollars (US$9,950 million with maturity from January 2026 to January 2053), euros (5,330 million euros with maturity from January 2025 to November 2041), Renminbi (RMB41,500 million with maturity from November 2024 to July 2054) and Hong Kong dollars (HK$42,000 million with maturity from May 2025 to October 2026). They do not include the outstanding bonds with nominal value of HK$180,101 million and alternative bonds with nominal value of US$1,000 million (equivalent to HK$7,774 million as at September 30, 2024) issued under the Government Bond Programme (with proceeds credited to the Bond Fund). Of these bonds under the Government Bond Programme (including Silver Bonds with nominal value of HK$97,101 million, which may be redeemed before maturity upon request from bond holders), bonds with nominal value of HK$55,139 million will mature within the period from October 2024 to September 2025 and the rest within the period from October 2025 to May 2042.
4. Includes guarantees provided under the SME Loan Guarantee Scheme launched in 2001, the Special Loan Guarantee Scheme launched in 2008, the SME Financing Guarantee Scheme launched in 2012, and Loan Guarantee Scheme for Cross-boundary Passenger Transport Trade, Loan Guarantee Scheme for Battery Electric Taxis and Loan Guarantee Scheme for Travel Sector launched in 2023.
5. Includes HK$249,749 million, being the balance of the Land Fund held in the name of "Future Fund", for long-term investments up to December 31, 2030. The Future Fund also includes HK$4,800 million, being one-third of the actual surplus in 2015-16 as top-up.
Advance estimates on Gross Domestic Product for third quarter of 2024
The Census and Statistics Department (C&SD) released today (October 31) the advance estimates on Gross Domestic Product (GDP) for the third quarter of 2024.
According to the advance estimates, GDP increased by 1.8% in real terms in the third quarter of 2024 over a year earlier, compared with the increase of 3.2% in the second quarter. For the first three quarters of 2024 as a whole, GDP increased by 2.6% in real terms over a year earlier.
Analysed by major GDP component, private consumption expenditure decreased by 1.4% in real terms in the third quarter of 2024 from a year earlier, compared with the decrease of 1.6% in the second quarter.
Government consumption expenditure measured in national accounts terms recorded an increase of 2.1% in real terms in the third quarter of 2024 over a year earlier, compared with the increase of 2.2% in the second quarter.
Gross domestic fixed capital formation grew by 3.7% in real terms in the third quarter of 2024 over a year earlier, following the increase of 4.1% in the second quarter.
Over the same period, total exports of goods measured in national accounts terms recorded an increase of 3.9% in real terms over a year earlier, moderated from the increase of 7.5% in the second quarter. Imports of goods measured in national accounts terms grew by 2.6% in real terms in the third quarter of 2024, compared with the increase of 3.4% in the second quarter.
Exports of services rose by 2.4% in real terms in the third quarter of 2024 over a year earlier, compared with the increase of 1.1% in the second quarter. Imports of services increased by 8.2% in real terms in the third quarter of 2024, after the increase of 12.3% in the second quarter.
On a seasonally adjusted quarter-to-quarter comparison basis, GDP decreased by 1.1% in real terms in the third quarter of 2024 when compared with the second quarter.
Commentary
A Government spokesman said that the Hong Kong economy continued to expand, though at a moderated pace, in the third quarter of 2024 over a year earlier. According to the advance estimates, real GDP grew by 1.8% year-on-year in the third quarter. For the first three quarters as a whole, real GDP grew by 2.6% over a year earlier. On a seasonally adjusted quarter-to-quarter basis, real GDP declined by 1.1% in the third quarter.
Analysed by major expenditure component, total exports of goods saw decelerated year-on-year growth alongside softening economic growth in some major markets. Exports of services continued to record a mild increase, supported by increasing cross-border economic activities. Overall investment expenditure rose further in tandem with the overall economic growth. However, private consumption expenditure continued to decline amid the change in residents' consumption patterns.
Looking ahead, the economy should continue to grow in the remainder of the year. While global economic uncertainties and trade conflicts may affect Hong Kong's exports of goods, monetary easing across major central banks and an improved outlook for the Mainland economy following the recent introduction of a wide range of stimulus measures would help support sentiment and activities in the domestic market. Specifically, gradually easing financial conditions should bode well for fixed asset investment. A possible easing of the Hong Kong dollar alongside the US dollar, coupled with the Central Government's various measures benefitting Hong Kong, the SAR Government's various initiatives to boost market sentiment and increasing employment earnings are conducive to spending by both residents and visitors in the domestic market, though the change in their consumption patterns will continue to pose challenges.
The Policy Address has set out a range of strong measures on economic development, consolidating and enhancing Hong Kong's traditional industries on the one hand while actively exploring new growth areas. On the financial front, the Policy Address announced to develop Hong Kong into an international gold trading market with a view to further consolidating Hong Kong’s status as an international financial centre. On the shipping side, the Policy Address announced to establish a commodity trading ecosystem, driving maritime services and promoting the development of related financial and professional services such as hedging activities of related futures products. In respect of the trade sector, the Government will strive to establish a high value-added supply chain service centre and attract Mainland and overseas enterprises to set up their headquarters or corporate divisions in Hong Kong. The Policy Address also reduced the import duty on liquor to promote liquor trade and boost the development of related high value-added industries. In addition, on developing new quality productive forces, the Policy Address announced measures such as the establishment of a $10 billion Innovation and Technology Industry-Oriented Fund and the development of low-altitude economy. The Government will implement various initiatives in the Policy Address in full steam so as to create new impetus for Hong Kong's economic development.
The revised figures on GDP and more detailed statistics for the third quarter of 2024, as well as the revised GDP forecast for 2024, will be released on November 15, 2024.
Further information
The year-on-year percentage changes of GDP and selected major expenditure components in real terms from the third quarter of 2023 to the third quarter of 2024 are shown in Table 1.
When more data become available, the C&SD will compile revised figures on GDP. The revised figures on GDP and more detailed statistics for the third quarter of 2024 will be released at the C&SD website (www.censtatd.gov.hk/en/scode250.html) and the Gross Domestic Product by Expenditure Component report (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1030001&scode=250) on November 15, 2024.
For enquiries about statistics on GDP by expenditure component, please contact the National Income Branch (1) of the C&SD (Tel: 2582 5077 or email: gdp-e@censtatd.gov.hk).
