In the second quarter, GDP expanded 1.1% over the same quarter the previous year, which was faster than the revised 0.7% growth recorded in the previous quarter (previously reported: +0.4% year-on-year). The quarterly result was broadly in line with market expectations of a 1.0% rise. The acceleration came on the back of a lower base comparison, as last year's massive earthquake and tsunami in Japan, which disrupted the external sector, caused the economy to contract a steep 3.4% in Q2 2011. Domestic demand weakened notably amid softer growth in both private consumption (Q1: +6.5% yoy; Q2: +3.7% yoy) and gross fixed investment (Q1: +12.9% yoy; Q2: +5.7% yoy). In contrast, government consumption accelerated to a 3.6% expansion (Q1: 2.3% yoy). Meanwhile, the external sector improved but remains sluggish amid global headwinds. Exports of goods and services expanded a negligible 0.1% in Q2 (Q1: -3.9% yoy), while imports added 0.8% (Q1: -2.0% yoy). As a result, the net contribution from the external sector to overall growth improved from minus 4.0 percentage points in the first quarter to minus 1.4 percentage points in the second. A quarter-on-quarter comparison does not corroborate the acceleration suggested by the annual figures, as the economy dipped 0.1% in the second quarter in seasonally adjusted terms, which contrasted the 0.6% growth seen in the first quarter and market expectations of 0.1% growth. Against this backdrop, the government revised its full-year GDP growth forecast from the previous 1.0%-3.0% to a new range of between 1.0% and 2.0%.
Hong Kong GDP
GDP grows aided by base effect
August 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.