In the third quarter, GDP expanded 1.3% over the same quarter the previous year, which was slightly faster than the revised 1.2% growth recorded in the previous quarter (previously reported: +1.1% year-on-year). Despite the improvement, the quarterly figure was below market expectations of a 1.7% rise. Domestic demand remained robust amid stronger growth in both gross fixed investment (Q2: +5.7% yoy; Q3: +8.7% yoy), and government consumption (Q2: +3.5% yoy; Q3: +3.7% yoy). In contrast, private consumption decelerated to a 2.8% expansion (Q2: +3.1% yoy). Meanwhile, the external sector deteriorated amid global headwinds. Exports of goods and services expanded 3.1% in Q3 (Q2: +0.4% yoy), while imports added a stronger 4.0% (Q2: +1.0% yoy). As a result, the net contribution from the external sector to overall growth deteriorated from minus 1.3 percentage points in the second quarter to minus 1.7 percentage points in the third. A quarter-on-quarter comparison corroborates the improvement suggested by the annual figures, as the economy grew 0.6% in the third quarter in seasonally adjusted terms, which contrasted the 0.1% contraction seen in the second quarter and overshot market expectations of 0.5% growth. Against this backdrop, the government revised its full-year GDP growth forecast from a range of between 1.0% and 2.0% to a point estimate of 1.2%.
Hong Kong GDP
Domestic demand sustains growth in Q3
November 16, 2012
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Hong Kong GDP Chart
Note: Year-on-year changes of GDP in %.
Source: Census and Statistics Department Hong Kong and FocusEconomics Consensus Forecast.
Hong Kong Economic News
October 20, 2016
Inflation came in at 2.7% in September, which was markedly below August’s 4.3%—the largest reading in 17 months.
October 5, 2016
The Nikkei Hong Kong Purchasing Managers’ Index (PMI) released by IHS Markit rose from August’s 49.0 to 49.3 in September.
September 30, 2016
Hopes last month that a recovery in retail sales might be underway were dampened in August on the back of declining numbers of mainland tourists.
September 22, 2016
Inflation came in at 4.3% in August, which was notably above July’s 2.3%.
September 5, 2016
The Nikkei Hong Kong Purchasing Managers’ Index (PMI) released by IHS Markit climbed from July’s 47.2 to 49.0 in August.