In the final quarter of 2024, Hong Kong's economic performance demonstrated significant vitality as its Gross National Income (GNI) expanded by 7.1% compared to the same period the previous year, reaching an impressive $898.6 billion. This growth outpaced the city's Gross Domestic Product (GDP), which grew by 5.3%, hitting $836.5 billion. According to the Census and Statistics Department, this disparity is largely attributed to a substantial net inflow of investment income. When adjusted for inflation, real GNI rose by 5.2%, surpassing the real GDP increase of 2.4%, highlighting the importance of external financial flows in bolstering the economy.

Investment income played a pivotal role in shaping these outcomes. In the fourth quarter, total primary income inflows surged by 8.1%, amounting to $496.8 billion, representing nearly 60% of the GDP. Meanwhile, outflows increased more modestly at 4.9%, totaling $434.7 billion or about 52% of GDP. Direct investment income inflows experienced a notable rise of 10.8%, while portfolio investment income climbed by 13.4%. On the outflow side, direct investment payments increased by 6.1%, and portfolio investment payouts to non-resident investors soared by 11.6%, reflecting heightened returns being distributed to foreign stakeholders.

The data underscores Hong Kong’s strategic position within global financial networks, with Mainland China and the British Virgin Islands emerging as the most prominent sources of primary income inflows, accounting for 42% and 17.6%, respectively. These regions also served as the primary destinations for outflows, comprising 27.5% and 21.9% of total disbursements. Looking at the full year of 2024, GNI showed consistent strength, growing by 7.5% to reach $3.48 trillion, exceeding GDP by $300.8 billion. Real GNI expanded by 5%, and primary income inflows amounted to $2.2 trillion, equating to nearly 70% of GDP, while outflows stood at $1.9 trillion, roughly 60% of GDP.

Hong Kong's ability to attract robust investment flows underscores its role as a dynamic hub connecting international capital markets. The sustained growth in both GNI and GDP reflects the city's resilience and adaptability in navigating complex global economic conditions. As it continues to foster strong ties with key partners like China and the British Virgin Islands, Hong Kong remains well-positioned to harness opportunities arising from globalization, ensuring prosperity for its citizens and contributing positively to regional economic development.