In the third quarter, GDP expanded 4.3% over the same quarter last year, which was below the revised 5.3% growth recorded in Q2 2011 (previously reported: 5.1% year-on-year). The reading came in virtually in line with market expectations of a 4.2% expansion. The slowdown reflected a significant deterioration in net exports, mitigated by resilient domestic demand amid stable labour market conditions and rising incomes. Domestic demand improved, as gross fixed investment strengthened from a 7.0% increase in the second quarter to a 10.2% expansion in the third, and private consumption remained strong with an 8.8% expansion. In contrast, the external sector deteriorated further as exports contracted while imports continued to expand. Exports of goods and services contracted 0.4% in the third quarter, owing to sluggish demand from the U.S. and Europe, while imports rose 1.4%. As a result, the external sector's net contribution to overall growth deteriorated from minus 2.1 percentage points in the second quarter to a 4.0 percentage-point detraction in the third. A quarter-on-quarter comparison does not corroborate the deceleration suggested by the annual figures, as the economy gained 0.1% over the second quarter in seasonally adjusted terms, contrasting the 0.4% drop recorded in the previous quarter. As a result of the deterioration in the external sector, the government now expects GDP to expand by 5.0% this year, the lower boundary of the previous range forecast of between 5.0% and 6.0%.
Hong Kong GDP
Economy slows amid weakening external demand
November 11, 2011
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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.