In the second quarter, GDP expanded 5.1% over the same quarter last year, which was below both the revised 7.5% growth recorded in Q1 2011 (previously reported: 7.2% year-on-year), and market expectations of a 6.0% expansion. The slowdown reflects reflected a significant deterioration in net exports, mitigated by resilient domestic demand. Domestic demand improved substantially, as gross fixed investment rebounded from a 0.3% contraction in the first quarter to an 8.1% expansion in the second, and private consumption strengthened (Q1: +8.0% yoy; Q2: +9.2% yoy). In contrast, the external sector deteriorated as imports outpaced exports, a partial result of the earthquake in Japan, which put a temporary brake on the regional supply chain. Exports of goods and services grew 1.7% in the second quarter, well below the 15.1% expansion in the first, while imports rose 2.6% (Q1: +11.9% yoy). As a result, the external sector's net contribution to overall growth swung from a 6.6 percentage points contribution in the first quarter to a 2.0 percentage points detraction in the second. A quarter-on-quarter comparison points to a deeper deceleration than the annual figures, as the economy contracted 0.5% over the second quarter in seasonally-adjusted terms, contrasting the strong 3.1% expansion in the first quarter. Despite the deceleration, the government maintains its GDP forecast unchanged, and expects the economy to expand between 5.0% and 6.0% this year.
Hong Kong GDP
Economy slows in the second quarter
August 12, 2011
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Hong Kong Economic News
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.
August 29, 2016
Although tourist visitors increased for the first time in July after 13 months of successive drops, the effect on retail sales appears to have been limited.