In the first quarter, GDP expanded 0.4% over the same quarter the previous year, which was only a fraction of the 3.0% growth recorded in the previous quarter. The subdued quarterly result marked, in fact, the weakest expansion since the fourth quarter of 2009, and undershot market expectations of a 1.4% increase. Although broad-based, the deceleration in the first quarter was mainly caused by a sharp deterioration in the external sector. Domestic demand weakened somewhat on the back of softer growth in private consumption (Q4 2011: +6.6% year-on-year; Q1 2012: +5.6% yoy). In contrast, gross fixed investment expanded a robust 12.2% over the same quarter the previous year (Q4 2011: +9.8% yoy). Meanwhile, the external sector deteriorated notably. Exports of goods and services contracted 3.8% (Q4 2011: +2.7% yoy), while imports fell 2.1% (Q4 2011: +3.8% yoy). As a result, the net contribution from the external sector to overall growth worsened from minus 1.8 percentage points in the fourth quarter to minus 3.7 percentage points in the first. A quarter-on-quarter comparison does not corroborate the deceleration suggested by the annual figures, as the economy expanded 0.4% in the first quarter in seasonally adjusted terms, unchanged from the increase recorded in the fourth quarter. The government expects full-year growth to range between 1.0% and 3.0% this year.
Hong Kong GDP
Economic growth decelerates sharply in Q1
May 10, 2012
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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.