Hong Kong's economy recession worsened from the previous quarter with continuous drop of GDP & GNP, marking a fourth straight quarter it felt the impact of the global economic downturn.

Hong Kong's gross national product (GNP) fell 9.2% in the first quarter over a year earlier, to 388.7 billion HK dollars ($50.15 billion), Hong Kong Census and Statistics Department said here Tuesday.

The gross domestic product (GDP), according to the department, estimated at 380.1 billion HK dollars ($49.05 billion) in the same quarter, 7.3% down during the period.

Compared with GDP, the value of the GNP was larger by 8.6 billion HK dollars ($1.11 billion) in the first quarter, representing a net external factor income inflow of the same amount, and equivalent to 2.3% of GDP during the period, the Census & Statistics Department says.

After netting out the effect of price changes, the GNP fell 9.6% in real terms in Q1 when compared with the same period last year, while GDP recorded a 7.8% decrease.

Total factor income inflow into Hong Kong, estimated at $171.2 billion HK dollars ($ 22.09 billion) in the first quarter and equivalent to 45% of GDP, fell 26.7% over a year earlier. The department said.

Total factor income outflow, estimated at 162.6 billion HK dollars ($162.6 billion) and equivalent to 42.8% of GDP, fell 24.6% over a year earlier. Taking the inflow and outflow together, a net external factor income inflow of 8.6 billion HK dollars ($1.11 billion) was recorded.

Within total factor income inflow, direct investment income fell 17.7%, portfolio investment income dropped 33.8%, while other investment income fell 55.8%. Within total factor income outflow, direct investment income dropped 20.1%, portfolio investment income fell 32.8%, while other investment income fell 50.1%.

The Chinese Mainland continued to be the largest source of Hong Kong's external factor income inflow in the first quarter, accounting for 41.6%. The British Virgin Islands came next, with a share of 26.3%. Other major sources were the US and the UK at 7.9% and 4.8%.

The Chinese Mainland and the British Virgin Islands were still the most important destinations for the city's external factor income outflow in the first quarter, accounting for 32.1% and 30%. Other major destinations were the Netherlands at 8.2%, and the US at 5.9%.

Foreign direct investment